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mote1985 [20]
2 years ago
14

Teresa has just opened a NOW account that pays 3.50​% interest. If she maintains the account at the required minimum balance of

​$500 for the next 12​ months, how much interest will she​ earn?
Business
1 answer:
nataly862011 [7]2 years ago
5 0

Answer:

She will earn $17.50.

Explanation:

Interest earned is the amount of interest earned on the a deposited amount in a saving amount on simple interest.

Balance in the account = $500

Interest rate = 3.5%

Interest earned = Average balance  x Interest rate

Interest earned  = $500 x 3.50%

Interest earned  = $500 x 0.035

Interest earned  = $17.50

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