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 = 114
r = 3% or 0.03
t = 5
Putting 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 = $760
Hence, Nellie pays $760 in additional interest each year.
