Answer: $1487.50
Step-by-step explanation:
hey there again!
Facts:
Principal (starting amount): $1,400
Annual interest rate: 12.5% <em>of the principal. </em>Whenever you get an annual interest rate as a percentage, its always that percentage of the starting amount.
Time given: 6 months, 1/2 a year
the question asks "total amount due' in 6 months. Basically, we want to know how much they will have in their account after 6 months.
Step 1: Find how much interest he will get in 6 months <u>as a percentage.</u>
6 months is 1/2 of a year, so find 1/2 of 12.5
1/2 of 12.5
1/2 x 12.5
0.5 x 12.5
6.25%
Step 2: Find how much interest he gets, but as a number.
Principal: $1400
6.25% of 1400= $87.50
Step 3: Find the total amount of money he will have after 6 months.
he starts with 1400, and gets an additional $87.50 added to his account after 6 months. How much does he have now?
To answer this, add to find the total:
87.50+1400= $1487.50
