Question

Loretta deposited $429 in a new savings account at Henry County Bank and Trust. She made no other deposists or withdrawals. After 6 months, the interest was computed at an annual rate of 6.25%. How much simple interest did her money earn?

Answer 1

Total earned = x (principle + interest)

x= 429(1+(0.0625*0.5)

x= 429(1.03125)

x = 442.41

442.41-429 = $13.41 earned in simple interest