A student received an inheritance from her grandmother of . She
places the money in a savings account paying simple interest at . What
will be the value of the account after 6 months?

To find the value of the account after 6 months with simple interest, we can use the formula:

Where:

For this situation:

Now substituting the values into the formula:

So, the value of the account after 6 months will be .

If you’re curious about simple interest in history, it has been used for thousands of years! Ancient Mesopotamia even used it as a way to encourage trade and agriculture, making it beneficial for both lenders and farmers. Imagine how different life would be without a simple way to grow your money over time!

For real-world applications, consider how even a small amount of money, like that $3000, can work for you over time in savings accounts, investments, or bonds. Understanding how to leverage simple interest helps you make smart financial moves, whether for saving for college, a car, or even a fun vacation!