Question

I want to put $580 until I saving account for one year. The rate of interest On the account was 6 1/2%. How much was the interest for the year in dollars and cents? Round to the nearest cent

Answer 1

Answer:

The amount of interest earned for the year is $37.7

Step-by-step explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

P represents principal or amount invested.

T represents the time

R represents the interest rate

I represents the interest

From the information given,

You want to put $580 into a saving account for 1 year. This means that

P = $580 and

T = 1 year

R = 6 1/2 = 6.5%

I = (580× 6.5×1)/100 = $37.7