Question

Ryan deposited $6500 into a savings account that has an annual simple interest rate of 2.3%.

Find the amount in the savings account after half a years.
Round to the nearest whole number.

Answer 1

$ 6575

Explanation:

To find the amount in the savings account after half a year with simple interest, you can use the formula:

A = P + (P r t)

Where:

A = the final amount

P = the principal amount

r = the annual interest rate

t = the time (in years)

In this case, P = $6500, r = 0.023 (2.3% in decimal form), and t = 0.5 years (half a year).

Now, let's plug these values into the formula:

A = 6500 + (6500 × 0.023 × 0.5)

A = 6500 + (6500 × 0.0115)

A = 6500 + 74.75

A ≈ $6574.75

Rounding to the nearest whole number, the amount in the savings account after half a year is approximately $6575.