Sarah has $480 in her savings account earning 4/1/4% interest. How much interest will she earn in 2/1/2 years? How much money will be in the account after 2/1/2 years?
First year -- $480 x .0425 = $20.40
..................$480 + 20.40 = $500.40
Second year -- $500.40 x .0425 = $21.27
...............$500.40 + 21.27 = $521.67
Half year -- $521.67 x .0425 = $22.17/2
............$521.67 + $11.09 = $532.76