Question

You put $550 in an account that earns 4.4% simple interest per year. How much interest do you earn in 6 months

Answer 1

You earn $12.10 in interest in 6 months

Answer 2

$12.10

Explanation:

We are given that $550 in an account that earns 4.4% simple interest per year .

We have to calculate value of interest your earn in 6 months

Principle amount=P=$550

Rate of interest =4.4%

Time= 1 year

Using simple interest formula

`S.I=(P* r* t)/(100)`

Where P= Principle amount

r=Rate of interest

t= times in years

Substitute the values in given formula then we get

S.I=
`(550*4.4*1)/(100)`

S.I=$24.20

Now, time =6 months=
`(6)/(12)=(1)/(2) year`

S. I earn in one year =$24.20

S.I earn in half year =
`(1)/(2)* 24.20=$12.10`