Question

Arianna put $250 in a savings account with an interest rate of 3%. If Arianna does not deposit or withdraw any money, what is the amount of interest that Arianna will earn at the end of six MONTHS?

Answer 1

She will earn 485.13075 in interest.

Explanation:

Assuming the interest rate is monthly and it is simple interest, the equation is Total = amount * (1 + rate) * time

Fill that out and solve the equation

T = 2500 * (1.03) * 6

T = 2500 * (1.1940523)

T = 2985.13075

To find the interest subtract T by 2500

2985.13075 - 2500 = 485.13075