Question

on April 30, you opened a saving account at Zen savings Bank with deposit of $754.50. At the end of November the interest was computed at an annual rate of 6% and added to the balance in your account. How much simple Interest did your money earn?

Answer 1

The time from when you opened the account and when the bank added the interest was 7 months.

To know how much you earn in this 7 months we have to know how much would you have earned in the whole year.

In a year wou would have earn of interest

`754.50(.06)=45.27`

This means that each month you would have earned

`(45.27)/(12)=3.77`

Therefore the amount you've earned in 7 months is $26.39.