Question

Henry Bonnacio deposited 1,000 in a new savings account at First National Bank. He made no other deposits or withdrawls. After 6 months the interset was computed at an annual rate of 6 1/2%. How much simple interst did his money earn.

Answer 1

* For an annual rate of 6.5% this means that the interest earned in 6 months is just half of that, or 3.25%
* Applying this to the principle of 1000 we calculate:
* 1000 * 0.0325 = 32.50.