You invest $75.00 the first month and $1,000.00 the second month at 3.75% APR. How much interest do you accrue at the end of the second month? (1 point) Responses $0.23 $0.23 $3.36 $3.36 $3.59 $3.59 $3.13
To calculate the interest accrued at the end of the second month, we need to find the interest earned on each individual investment and then add them together.
For the first month, the interest earned on $75.00 would be:
Interest = Principal x Rate
Interest = $75.00 x 0.0375
Interest = $2.81 (rounded to the nearest cent)
For the second month, the interest earned on $1,000.00 would be:
Interest = Principal x Rate
Interest = $1,000.00 x 0.0375
Interest = $37.50
Now, let's add up the interest earned on both investments:
Total Interest = $2.81 + $37.50
Total Interest = $40.31
Therefore, you would accrue $40.31 in interest at the end of the second month.