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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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MrEquation
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

The earning will be 1 dollar and 3 cents in interest after the first full month.

What is the annual percentage rate (APR)?

It shows the total cost of borrowing or loan over a year.

You are creating an emergency fund and decide to place $415.00/month in an account that earns a 3.75% apr.

We know the formula to calculate interest

[tex]\rm Interest = \dfrac{P*APR}{12}[/tex]

We have

P = $ 415

APR = 3.75% = 0.0375

Then the interest will be

[tex]\rm Interest = \dfrac{415*0.0375}{12}\\\\\rm Interest = 1.29687 \approx 1.3[/tex]

More about the APR link is given below.

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