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Alice Tsongas deposited $600 in a new savings account at Bradenton Savings and Loan Association. No other deposits or withdrawals were made. After 3 months, the interest was computed at an annual interest rate of 3.5%. How much simple interest did her money earn? (Provide a step by step on how you solved it, along with the answer please).

Respuesta :

P = $600, the principal
R = 3.5% = 0.035, the annual interest rate

After 3 months, the duration is
T = 3/12 = 0.25 years

Simple interest is calculated as Principal x Time x Rate.
Therefore the interest earned is
$600 * 0.25 * 0.035 = $5.25

Answer: $5.25

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