Question

Your mom opens an account to save money for a family vacation. The account earns an annual interest rate of 4%. She earns $37 in simple interest after 6 months. How much money did she put in the account when she opened it? Use the formula: I = Prt.

Answer 1

$1,850. The correct answer to this problem would be $1,850.

Answer 2

The formula would be I=(37)(.04)(6) which would give you $8.88