Question

Leshawn has $580 in a savings account that pays 3% interest.

How much interest will be earned in 5 years?
How much interest will be earned in 6 months?

Answer 1

For 5 years $87

For 6 months $8.7

Explanation:

To calculate the interests, we use the simple interest formula

Mathematically;

I = PRT/100

where P is the amount invested called the principal = $580

R is the rate = 3%

Time differs which may be 5 years or 6 months according to the question.

kindly note that 6 months is 0.5 year

For 5 years, we have

I = (580 * 3 * 5)/100 = $87

For 6 months, we have;

I = (580 * 3 * 0.5)/100 = $8.7