Answer :

Answer:

The interest earned is $421.2.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

[tex]E = P*I*t[/tex]

In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

In this question:

[tex]P = 2880, I = 0.045, t = 3 + \frac{1}{4} = 3.25[/tex]

So

[tex]E = P*I*t[/tex]

[tex]E = 2880*0.045*3.25[/tex]

[tex]E = 421.2[/tex]

The interest earned is $421.2.

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