Question

Jada opens a savings account with a deposit of $800. The bank will pay
her 4 3/4% interest per year.
a. How much interest will Jada receive at the end of 1⁄2 year?

b. How much interest will Jada receive at the end of 1 year?.

Answer 1

Simple Interest formula is :  $I=P*r*t$, where I = Amount of interest, P= Principal amount, r = rate of interest in decimal and t = time duration in year.

Given in the question that,  P = $800 and r = $4\frac{3}{4}$% = 4.75% = 0.0475

a.  For t = $\frac{1}{2}$ year ....

$I= 800*0.0475*\frac{1}{2}\\ \\ I= 19$

So, Jada will receive $19 interest at the end of 1/2 year.

b.   For t = 1 year ....

$I= 800*0.0475*1\\ \\ I= 38$

So, Jada will receive $38 interest at the end of 1 year.