Question

Fran deposited 4869 into a savings account that pays simple annual interest rate of 3.25% how much interest will she earn after 30 months. SHOW THE WORK

What is y when x=30 show the work

Answer 1

$395.61

Explanation:

The formula for simple interest is:

`i=Prt`

Where

i is the interest amount

P is the principal amount

r is the rate of interest per time period

t is the time period

Here,

P = 4869

we want to find after 30 months, that converted to years is:

30/12 = 2.5 years

t = 2.5

The annual rate is 3.25% = 0.0325

Now, substituting, we find our answer:

`i=Prt\\i=(4869)(0.0325)(2.5)\\i=395.61`

The interest earned is $395.61