Question

An account earns simple interest. (a) Find the interest earned. (b) Find the balance of the account: $500 at 12% for 6 months

Answer 1

keeping in mind that a year has 12 months, so 6 months is really 6/12 of a year, and we can squeeze that to 0.5 year.

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 12\%\to (12)/(100)\dotfill &0.12\\ t=years\to (6)/(12)\dotfill &0.5 \end{cases} \\\\\\ I = (500)(0.12)(0.5) \implies I = 30\hspace{5em}\underset{\textit{accumulated amount}}{\stackrel{500~~ + ~~30}{\text{\LARGE 530}}}`