Question

Leanne deposited $1,500 into a savings account for which simple interest is calculated quarterly. If her $1,500 grew to $1,509 after 3 months, what is the yearly interest rate on Leanne's account? A. 6% B. 2.4% C. 0.24% D. 0.6% Mathematics

Answer 1

Answer:

Option B is correct

2.4%

Step-by-step explanation:

Using the formula:

$A = P+Prt$

⇒$A = P(1+rt)$           .....[1]

where,

P is the principal amount

A is the Amount after t years

r is the rate expressed in decimal

As per the statement:

Leanne deposited $1,500 into a savings account for which simple interest is calculated quarterly.

⇒$P = \ 1500$

It is also given that:  If her $1,500 grew to $1,509 after 3 months

⇒$A = \ 1509$ and t = $\frac{3}{12} = \frac{1}{4} =0.25$ years

Substitute these given values in [1] we have;

$1509 = 1500(1+0.25r)$

Divide both sides by 1500 we have;

$1.006 = 1+0.25r$

Subtract 1 from both sides we have;

$0.006 = 0.25r$

Divide both sides by 0.25 we have;

$0.024 = r$

or

r = 0.024 or 2.4%

Therefore,  the yearly interest rate on Leanne's account is, 2.4%

Answer 2

The answer would be B 2.4%. 

After doing 9/375 = .024, you just move the decimal 2 places over to find the percentage.

Hope this helps! :)