Question
A student received an inheritance from her grandmother of
places the money in a savings account paying simple interest at
will be the value of the account after 6 months?
places the money in a savings account paying simple interest at
will be the value of the account after 6 months?
Ask by Hodges Murphy. in the United States
Mar 15,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
After 6 months, the account will be worth $3075.
Solution
Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.
Unlock Answered by UpStudy AI and reviewed by a Professional Tutor
Like
The Deep Dive
To find the value of the account after 6 months with simple interest, we can use the formula:
Where:
-
is the total amount after time -
is the principal amount (initial investment) -
is the rate of interest (expressed as a decimal) -
is the time in years
For this situation:
-
-
-
years
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!
