Question

Katie has $6,500 in a saving account if she earns 6% interest every month how much money does Katie have in your bank account after half a year​

Answer 1

To calculate the amount of money Katie has in her bank account after half a year, we need to use the compound interest formula: A = P(1 + r/n)^(nt).

Step-by-step explanation:

To calculate the amount of money Katie has in her bank account after half a year, we need to use the compound interest formula: A = P(1 + r/n)^(nt). Here, A represents the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the time period.

In this case, P = $6,500, r = 6% (which can be written as 0.06), n = 12 (since the interest is compounded monthly), and t = 0.5 (since half a year is equivalent to 6 months).

Substituting these values into the formula, we get:

A = $6,500(1 + 0.06/12)^(12*0.5)

Calculating this expression will give us the final amount of money Katie has in her bank account after half a year.