1. The interest collected in the first 6 months can be calculated as:
Interest = Principal x Rate x Time
Time = 6 months = 0.5 years
Therefore, Interest = $800 x 0.03 x 0.5 = $12
So the answer is $12.
2. The balance in the account after 4 years can be calculated using the formula:
Balance = Principal x (1 + Rate)^Time
Where:
Principal = $320
Rate = 3.5% per year = 0.035
Time = 4 years
Therefore, Balance = $320 x (1 + 0.035)^4 = $364.80
So the answer is $364.80.
1. Jackie takes out a simple interest loan for $800 at a rate of 3% per year. How much interest will she collect in the first 6 months?
$12
$144
$30
$944
2. Chris deposits $320 into an account that earns 3.5% interest per year. What is the balance in the account after 4 years?
$448.00
$331.00
$364.80
$768.00
1 answer
5 answers