Nellie has a bankruptcy on her credit report and therefore pays higher interest rates on her current loans. She calculates that the extra money she pays in additional interest each year, if invested at the rate of 3% for 5 years, could earn her simple interest totaling $114. Approximately how much does Nellie pay in additional interest each year

Answer:Nellie pays $760 in additional interest each year.Step-by-step explanation:Nellie calculates that the extra money she pays in additional interest each year, if invested at the rate of 3% for 5 years, could earn her simple interest totaling $114. So, here I = 114r = 3% or 0.03t = 5Putting these in simple interest formula: [tex]I=p\times r\times t[/tex][tex]114=p\times0.03\times5[/tex]=> [tex]p=\frac{114}{0.03\times5}[/tex]=> [tex]p=\frac{114}0.15}[/tex]p = $760Hence, Nellie pays $760 in additional interest each year.