Question

On January 1, the balance in your account in $800. On July 1, you deposit $250. Your bank pays 5.8% interest. Calculate the amount of simple interest that you earned on July 1

Answer 1

Answer:

The amount of simple interest  earned on July 1 is  $823.2.

Step-by-step explanation:

Here, the principal amount  =  $800

The rate of interest = 5.8%

Now, the interval of the deposition = from 1 January to 1 July

So, the duration of the deposited amount = 6 months

Now, 12 Months = 1 Year

So, 6 months  =  6 /12 = 0.5 year

Now,$\textrm{SIMPLE INTEREST} = \frac{P \times R \times T}{100}$

$\implies SI = \frac{800 \times 5.8 \times 0.5}{100} = 23.2$

So the interest  earned on $800 is $23.2.

Now, Amount = INTEREST + PRINCIPAL

⇒ A = $800 + $23.2  = $823.2

Hence,  the amount of simple interest  earned on July 1 is  $823.2.