Answer:
$395.61
Step-by-step explanation:
The formula for simple interest is:
[tex]i=Prt[/tex]
Where
i is the interest amount
P is the principal amount
r is the rate of interest per time period
t is the time period
Here,
P = 4869
we want to find after 30 months, that converted to years is:
30/12 = 2.5 years
t = 2.5
The annual rate is 3.25% = 0.0325
Now, substituting, we find our answer:
[tex]i=Prt\\i=(4869)(0.0325)(2.5)\\i=395.61[/tex]
The interest earned is $395.61
