Stevehas$89,753inasavingsaccountthatearns9%interestperyear.Theinterestisnotcompounded.Tothenearestcent,howmuchinterestwillheearnin6months?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Round your answer to the nearest cent.

1 answer

To calculate the interest earned in 6 months, we can use the formula:

\[ i = prt \]

where:

  • \( p \) is the principal amount ($89,753)
  • \( r \) is the annual interest rate (9% or 0.09 as a decimal)
  • \( t \) is the time in years (6 months is \( \frac{6}{12} = 0.5 \) years)

Now, plug in the values:

\[ i = 89,753 \times 0.09 \times 0.5 \]

Calculating it step by step:

  1. Calculate \( 0.09 \times 0.5 = 0.045 \)
  2. Now calculate \( 89,753 \times 0.045 \)

\[ i = 89,753 \times 0.045 = 4,038.885 \]

Now, rounding to the nearest cent, the interest earned in 6 months is:

\[ i \approx 4,038.89 \]

Therefore, Steve will earn approximately $4,038.89 in interest over 6 months.