Answer:
$28.84
Step-by-step explanation:
In this question, Erica's money saved with a 7.5% annual/yearly interest. The interest paid monthly, so it compounded monthly. If the deposit is $500 at the start, then the number of money after 9 months will be:
final money= initial money x (100% + annual rates/12)^duration
[tex]final money = $500 x(100%+7.5%/12)^9\\final money = $500 x (1.00625)^9\\final money = $528.84[/tex]
The interest will be:
final money= initial money + interest
interest= final money - initial money
interest= $528.84- $500= $28.84
