You are creating an emergency fund and decide to place $415.00/month in an account that earns a 3.75% apr. how much interest accrues by the end of the first full month?

Question

Colt Brooks

Mathematics

10 July, 10:00

You are creating an emergency fund and decide to place $415.00/month in an account that earns a 3.75% apr. how much interest accrues by the end of the first full month?

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Anabella Jackson · Answer 1

You will earn $1.30 in interest after the first full month.

Since you are looking for the monthly interest, you have to divide the APR by 12. The APR is the amount of interest for the whole year.

To find the interest, we would evaluate:

415 x 0.0375 / 12