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Loretta deposited $429 in a new savings account at Henry County Bank and Trust. She made no other deposits or withdrawals. After 6 months, the interest was computed at an annual rate of 6 .25%. How much simple interest did her money earn?

Respuesta :

mathstudent55
i = prt

Simple interest is the product of the principal (the money deposited), the annual interest rate, and the time.

p = $429
i = 6.25% = 0.0625
t = 0.5 year

i = $429 * 0.0625 * 0.5

i = 13.40625

The interest is $13.41
jamiexx
Interest can be calculated by the following equation.
Interest = Principal x rate p.a x time
Now we can sub the numbers in.
Interest = 429 x (6.25% / 12) x 6
Note that u have to divide the annual rate by 12, which is the number of months in a year, as the amount time in this question is counted by months
Interest = 429 x (6.25% / 12) x 6
Interest = $ 13.406249914
Round up if needed.

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