Question

Gretta has a savings account with $6,500 in it that earns 9.5% simple interest per year. How much interest, to the nearest cent, will Gretta earn in 1 year? Give your answer in dollars.​

Answer 1

Gretta will earn $617.50 interest

A = $7,117.50

Equation:

A = P(1 + rt)

Explanation:

First, converting R percent to r a decimal

r = R/100 = 9.5%/100 = 0.095 per year.

Solving our equation:

A = 6500(1 + (0.095 × 1)) = 7117.5

A = $7,117.50

The total amount accrued, principal plus interest, from simple interest on a principal of $6,500.00 at a rate of 9.5% per year for 1 years is $7,117.50.

Answer 2

Answer: $617.50

Explanation:

9.5% of 6500 = 9.5*6500/100=9.5*65=617.5

So the interest is $617.5 or $617.50

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