Answer: She will earn $900 during the following year.
Step-by-step explanation:
Since we have given that
Rate of interest = 4%
Interest = $75
Let the Principal be x
As we know the formula for "Simple Interest":
[tex]S.I.=\frac{P\times R\times T}{100}\\\\75=\frac{P\times 4\times 1}{12\times 100}\\\\75\times 100\times 12=4\times P\\\\\frac{75\times 100\times 12}{4}=P\\\\25\times 75\times 12=P\\\\\$22500=P[/tex]
So, Interest earned during the following year will be
[tex]I=\frac{P\times R\times T}{100}\\\\I=\frac{22500\times 4\times 1}{100}=\$900[/tex]
Hence, She will earn $900 during the following year.
