You invest $75.00 the first month and $100.00 the second month at 3.75% APR. How much interest do you get at the end of the second month?
$0.23
$3.36
$3.59 my answer
$3.13
I'm sorry no one got to youearlier but That answer seems right to me. If not It seems to be the second answer, 3.36 because I did an estamation
The answer is $3.36
To calculate the interest earned at the end of the second month, you need to use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal amount for the first month is $75.00 and for the second month is $100.00. The annual percentage rate (APR) is 3.75%, which is the same as 0.0375 in decimal form.
For the first month, the interest earned would be:
Interest = $75.00 x 0.0375 x (1/12) (since the APR is given annually and the interest is calculated monthly)
Interest = $2.81 (rounded to two decimal places)
For the second month, the interest earned would be:
Interest = $100.00 x 0.0375 x (1/12)
Interest = $3.13 (rounded to two decimal places)
Therefore, the correct answer is $3.13, which is the fourth option.