Question

Erika's parents gave her $500 for her high school graduation she put the money into a savings account that earns 7.5% annual interest she left the money in the account for 9 months before she withdrew it.
how much interest did the account earn if it interests what is paid monthly

Answer 1

Answer: $\ 28.13$

Step-by-step explanation:

The interest (simple interest) $I$ is calculated by:

$I=(P)(r)(t)$

Where:

$P=\ 500$ is the principal

$r=7.5\% annual=0.075 annual$ is the percent of the principal that is paid over a period of time (yearly in this case).

$t=\frac{9}{12}$ is the time, since we are told the money was left in the account for 9 months of the 12 months a year has.

$I=(\ 500)(0.075)(\frac{9}{12})$

$I=\ 28.125 \approx \ 28.13$