## Erica’s parents gave her $500 for her high school graduation. She put the money into a savings account that earned 7.5% annual interest. She

Question

Erica’s parents gave her $500 for her high school graduation. She put the money into a savings account that earned 7.5% annual interest. She left the money in the account for two years before she withdrew it. How much interest did the account earn?

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Math
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2021-09-22T01:52:16+00:00
2021-09-22T01:52:16+00:00 1 Answer
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## Answers ( )

Answer:$28.84

Step-by-step explanation:In this question, Erica’s money saved with a 7.5% annual/yearly interest. The interest paid monthly, so it compounded monthly. If the deposit is $500 at the start, then the number of money after 9 months will be:

final money= initial money x (100% + annual rates/12)^duration

The interest will be:

final money= initial money + interest

interest= final money – initial money

interest= $528.84- $500= $28.84

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