lily saved $8,780 at 7% simple interest every year. what is the earned interest after 6 months?
lily saved $8,780 at 7% simple interest every year. what is the earned interest after 6 months?
Answer
Explanation:
Step1: Identify time - period ratio
The annual interest is given and we want 6 - month interest. Since 6 months is $\frac{6}{12}=\frac{1}{2}$ of a year.
Step2: Calculate 6 - month interest
Multiply the annual interest by the time - period ratio. The annual interest is $232.75$. So the interest after 6 months is $232.75\times\frac{1}{2}$. $232.75\times\frac{1}{2}=116.375$
Answer:
$116.38$ (rounded to the nearest cent)