Question

Help with some basic math questions?

Answer 1

Alice Tsongas deposited $600 in a new savings account at Bradinton Savings and Loan Association. No other deposits or withdrawals were made. After 3 months the interest was computed at anannual interest rate of 3 ½%. How much simple interest did her money earn?

Answer 2

To figure this out you would want to want to convert the interest percentage into a decimal then multiply it by the amount deposited

Answer 3

The formula for simple interest is (time) (rate) (starting amount) but because your time is in months and your rate goes by years I believe it is necessary to put the 3 months of 12 for the year. 3 months is 1/4 of a year aka .25 of a year. So multiply (.25) (3.5) (600) and that should get the right answer: 525

Answer 4

oh shoot, I forgot to make the rate into a decimal, do that before multiplying and that should be correct.

Answer 5

the rate as a decimal would be 3.50 though right?

Answer 6

No, as a percentage to decimals it should be .035 (I'm really sorry if this is wrong, I learned this two years ago). This might help: http://math.about.com/od/businessmath/ss/Interest.htm

Answer 7

Oooh its because its over 100 or something like that,i learned this 2 years ago too but its mixed math -__- thanks!!!

Answer 8

Yep! If I can help with anything else I'll try haha

Answer 9

Yes, the interest rate is 3.5 % which = 3.5 / 100 (percent coming from the Latin for "by the hundred") or 0.035.

Answer 10

$600 * 0.035 * (3/12) = the amount of interest earned

Answer 11

Thanks both of you :)