Question

Jeanine deposits $525 in a bank account. The simple interest rate is 2 3/5% per year. Find the total amount in the account , including interest , in 6 months. Round your answer to the nearest cent

Answer 1

Given that the principal (P) is $525, rate of interest (R) is 2(3/5)%, and the time (T) is 6 months (i.e. 0.5 year).

Then the total interest (SI) on the principal is calculated as,

`\begin{gathered} SI=(P* R* T)/(100) \\ SI=(525*(2(3)/(5))*0.5)/(100) \\ SI=(525*((13)/(5))*0.5)/(100) \\ SI=(525*13*0.1)/(100) \\ SI=6.825 \end{gathered}`

Now, solve for the amount (A) as,

`\begin{gathered} A=P+SI \\ A=525+6.825 \\ A=531.825 \\ A\approx531.82 \end{gathered}`

Thus, Jeanine will have $531.82 in the account at the end of the 6 months.in