110k views
1 vote
PLZ HELP FAST the bank at which shareko deposits his money pays 5 1/4 % simple interest annually . How much interest will he earn on a deposit of $300.00 left in the account for six months ? what will be the balance in the account at the end of this time.

User Zliw
by
8.8k points

1 Answer

3 votes

Answer:

Explanation:

Simple interest rate applies only to the principal amount deposited and not the compounded amount. The formula for simple interest is expressed as

I = PRT/100

Where

I is the interest.

P is the principal or initial amount deposited.

R is the interest rate.

T is the duration in years.

From the information given,

P = $300.00

R = 5 1/4% = 5.25%

T = 6 months = 0.5 years

Therefore,

I = (300×5.25× 0.5)/100 =787.5/100

I = 7.875

The balance in the account at the end of this time will be

300 + 7.875 = $307.875

User Cengsemihsahin
by
8.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories