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18 August, 16:38

Teresa has just opened a NOW account that pays 3.50 % interest. If she maintains the account at the required minimum balance of $500 for the next 12 months, how much interest will she earn?

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  1. 18 August, 19:09
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    She will earn $17.50.

    Explanation:

    Interest earned is the amount of interest earned on the a deposited amount in a saving amount on simple interest.

    Balance in the account = $500

    Interest rate = 3.5%

    Interest earned = Average balance x Interest rate

    Interest earned = $500 x 3.50%

    Interest earned = $500 x 0.035

    Interest earned = $17.50
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Home » Business » Teresa has just opened a NOW account that pays 3.50 % interest. If she maintains the account at the required minimum balance of $500 for the next 12 months, how much interest will she earn?
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