Using simple interest, it is found that she needs to earn $2,391.07 during the summer.
<h3>Simple Interest</h3>
Simple interest is used when there is a single compounding per time period.
The amount of money after t years in is modeled by:
A(t) = A(0)(1 + rt)
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
For this problem, the objective is to have <u>$1200 in 3 months = 0.25 years</u>, hence the parameters are given as follows:
A(0.25) = 1200, t = 0.25, r = 0.03.
Hence we have to solve for A(0):
A(0)(1 + 0.03 x 0.25) = 1200
A(0) = 1200/(1 + 0.03 x 0.25)
A(0) = $1,191.07.
She also needs to earn $1,200 to pay the first-semester bill on time, hence:
1200 + 1191.07 = $2,391.07.
She needs to earn $2,391.07 during the summer.
More can be learned about simple interest at brainly.com/question/16646150
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