Question

Tina left $1,500 in her savings account for 3 months at 1 ¾ % simple interest. How much interest did she earn?

Answer 1

I think your answer maybe:
6.56

Answer 2

Answer:

$ 65.34 ( approx )

Step-by-step explanation:

Since, the amount after getting simple interest is,

$A=P+P\times r\times t$

Where, P is the principal amount,

r is the rate per period

t is number of periods,

Here, A = $ 1,500,

t = 3 months,

Annual rate = $1\frac{3}{4}\%=\frac{7}{4}\%=1.75\% = 0.0175$

So, the monthly interest = $\frac{0.0175}{12}$

By substituting the values in the above formula,

$15000=P+P\times \frac{0.0175}{12}\times 3$

$15000=P+P\times \frac{0.0175}{4}$

$15000=P+0.004375P$

$\implies P=\ 14934.7$

Hence, the interest she earned is,

$I=14934.7\times \frac{0.0175}{12}\times 3 = \ 65.3393125\approx \ 65.34$