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victus00 [196]
3 years ago
10

Alex $8000 in a savings account that earns 3.25 % annually. How much will he earn in interest in 6 months?

Mathematics
1 answer:
kotegsom [21]3 years ago
6 0
<h3>Answer:  $130</h3>

=======================================================

Explanation:

I'm assuming the bank is using simple interest (instead of compound interest).

If so, then,

i = P*r*t

i = 8000*0.0325*0.5

i = 130

The amount of interest is $130

In the formula above, I used

  • P = 8000 = amount deposited
  • r = 0.0325 = annual interest rate in decimal form
  • t = 6/12 = 0.5 years, which means you don't use t = 6. We don't use t = 6 because the interest rate is on an annual basis, and not a 6-month basis.
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