Question

Henry deposited $1,000 in a new savings account. He made no other deposits or withdrawals. After 6 months the interest was computed at an annual interest rate of 6.5%?

Answer 1

The interest that is computed in the account is $31.98

Explanation:

Given as :

The principal amount deposited into saving account = p = $1000

The rate of interest applied = r = 6.5%

The amount is deposited for time period = t = 6 months = 0.5 year

Let the Amount in account after 6 months = $A

And Let The interest amount that is gained = $x

Now, From Compound Interest method

Amount = principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

Or, A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, A = $1000 ×
`(1+(\textrm 6.5)/(100))^(\textrm 0.5)`

Or, A = $1000 ×
`(1.065)^(0.5)`

Or, A = $1000 × 1.03198

∴ A = $1031.98

So, The Amount in account after 6 months = A = $1031.98

Now, Again

Interest = Amount - Principal

Or, x = A - p

Or, x = $1031.98 - $1000

∴ x = $31.98

So, The interest that is computed in the account = x = $31.98

Hence,The interest that is computed in the account is $31.98 Answer