Question

A $1,000 savings bond earns simple interest at the rate of 3% each year. The interest is paid at the end of every month.

How much interest will the bond have earned after 3 months?

Answer 1

$ 7.5

Explanation:

$1000*3/100=$30

in one year interest is $ 30 and after 3 months it will be $30/12*3=$7.5