Question

On January 1, the balance in your account in $800. On July 1, you deposit $250. Your bank pays 5.8% interest. Calculate the amount of simple interest that you earned on July 1

Answer 1

The amount of simple interest earned on July 1 is $823.2.

Explanation:

Here, the principal amount = $800

The rate of interest = 5.8%

Now, the interval of the deposition = from 1 January to 1 July

So, the duration of the deposited amount = 6 months

Now, 12 Months = 1 Year

So, 6 months = 6 /12 = 0.5 year

Now,
`\textrm{SIMPLE INTEREST}  = (P * R * T)/(100)`

`\implies SI = (800 * 5.8 * 0.5)/(100)  =  23.2`

So the interest earned on $800 is $23.2.

Now, Amount = INTEREST + PRINCIPAL

⇒ A = $800 + $23.2 = $823.2

Hence, the amount of simple interest earned on July 1 is $823.2.