Question

Jada opens a savings account with a deposit of $800. The bank will pay

her 4 3/4% interest per year.
a. How much interest will Jada receive at the end of 1⁄2 year?

b. How much interest will Jada receive at the end of 1 year?.

Answer 1

Simple Interest formula is :
`I=P*r*t`, where I = Amount of interest, P= Principal amount, r = rate of interest in decimal and t = time duration in year.

Given in the question that, P = $800 and r =
`4(3)/(4)`% = 4.75% = 0.0475

a. For t =
`(1)/(2)` year ....

`I= 800*0.0475*(1)/(2)\\ \\ I= 19`

So, Jada will receive $19 interest at the end of 1/2 year.

b. For t = 1 year ....

`I= 800*0.0475*1\\ \\ I= 38`

So, Jada will receive $38 interest at the end of 1 year.