Question

How much interest will Hannah

earn in 6 months if
she deposits
$630 in a savings account at a
6.5% interest rate?

Answer 1

keeping in mind that a year has 12 months, thus 6 months is really 6/12 of a year.

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$630\\ r=rate\to 6.5\%\to (6.5)/(100)\dotfill &0.065\\ t=years\to (6)/(12)\dotfill &(1)/(2) \end{cases} \\\\\\ I = (630)(0.065)((1)/(2)) \implies I\approx 20.48`