A customer has a balance of $1,350. Interest is paid at the end of 12 months. Assuming the balance remains at $1,350 for all 12 months, how much interest will be earned after 12 months if the interest rate on the account is 5.5%?

Answer 1

looks like a "simple interest" case

I = 1350 * .055 * 1 = .....

Answer 2

74.25