Question

Abed puts $750 in his savings account at an annual interest rate of 3% if abed doEs not withdraw or deposit any money what is the interest that abed will earn at the end of six months?

Answer 1

Abed will earn $11.25 in interest at the end of six months on his $750 savings account with an annual interest rate of 3%.

Step-by-step explanation:

The question asked is how to calculate the interest earned on a savings account balance over a period of six months at an annual interest rate. Since the stated annual interest rate is 3%, we need to halve this rate to calculate the interest for the six-month period. To find the interest earned by Abed over six months, you can use the following formula:

I = P × R × T

Where:

• I = Interest earned
• P = Principal amount (initial amount of money)
• R = Annual interest rate (as a decimal)
• T = Time (in years)

For Abed's case:

• P = $750
• R = 3% per year or 0.03 expressed as a decimal
• T = 0.5 years (since we're only calculating for 6 months)

Now plugging the values into the formula:

I = $750 × 0.03 × 0.5

I = $750 × 0.015

I = $11.25

Thus, Abed will earn $11.25 in interest at the end of six months if he does not withdraw or deposit any money.