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
1. a
2. b
3. b
4. d
Lesson 13: Debt Is Dangerous
Consumer Math A Unit 3: Finances: Income and Debt
hope this helps anyone out there.
how did you arrive at that amount? The monthly interest rate is only .035/12
The answer is B.
To calculate the interest earned at the end of the second month, we need to use the formula:
Interest = Principal x Rate x Time
Here,
Principal = $75.00 (amount invested in the first month)
Rate = 3.75% (annual interest rate in decimal form)
Time = 2 months (time period for which the investment is held)
First, let's calculate the interest earned in the first month:
Interest1 = Principal x Rate x Time
= $75.00 x 0.0375 x 1
= $2.81
Next, let's calculate the interest earned in the second month:
Principal2 = Principal1 (which is $75.00) + $100.00 (additional investment)
= $175.00
Interest2 = Principal2 x Rate x Time
= $175.00 x 0.0375 x 1
= $6.56
Therefore, the total interest earned at the end of the second month is $2.81 (from the first month) + $6.56 (from the second month) = $9.37.
None of the given answer choices are correct. The correct answer should be $9.37.