Question

Ms.Wright opens a savings account with a deposit of $800. The bank will pay her 3% interest per year A.) how much interest will Ms.Wright receive at the end of 1/2 year B.) how much interest will she receive at the end of 1 year

Answer 1

A) Ms.Wright receive $12 as interest at the end of 1/2 year.

B) Ms.Wright receive $24 as interest at the end of 1 year.

Explanation:

The sum deposited in the bank = Principle = $800

The rate of simple interest = 3%

The time = 6 months = (6/12) years = 0.5 years

`\textrm{SIMPLE INTEREST} = (P * R * t)/(100) \\\implies SI = (800 * 3 * 0.5)/(100) = 12`

So, here simple interest = $12.

So Ms.Wright receive $12 as interest at the end of 1/2 year.

B) Now here Time = 1 year

so, Simple interest =
`(800 * 3 *1 )/(100) = 24`

So Ms.Wright receive $24 as interest at the end of 1 year.