Question

Mickey's savings account. $975 on deposit. 5.5% annual interest rate. Time is 3 months. Find the Interest

Answer 1

$13.41

Explanation:

1 year = 5.5%

1/4 year = 5.5/4%

1/4 year = 1.375%

975 * 1.01375 (because percents become fractions by dividing by 100) = 988.41

988.41 - 975 (because you're looking for the interest not what's his final amount) = 13.41