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Answered

on April 30, you opened a saving account at Zen savings Bank with deposit of $754.50. At the end of November the interest was computed at an annual rate of 6% and added to the balance in your account. How much simple Interest did your money earn?

Answer :

The time from when you opened the account and when the bank added the interest was 7 months.

To know how much you earn in this 7 months we have to know how much would you have earned in the whole year.

In a year wou would have earn of interest

[tex]754.50(.06)=45.27[/tex]

This means that each month you would have earned

[tex]\frac{45.27}{12}=3.77[/tex]

Therefore the amount you've earned in 7 months is $26.39.

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