Math Problem Statement

Gabriel

has

$67,740

in

a

savings

account.

The

interest

rate

is

10

%

per

year

and

is

not

compounded.

How

much

interest

will

he

earn

in

6

months?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

$

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Solution

To calculate the interest Gabriel will earn in 6 months, we use the formula:

i=prti = prt

where:

  • p=67,740p = 67,740 (the principal amount)
  • r=0.10r = 0.10 (the interest rate as a decimal, since 10% = 0.10)
  • t=0.5t = 0.5 (time in years, since 6 months is half a year)

Now, plug in the values:

i=67,740×0.10×0.5i = 67,740 \times 0.10 \times 0.5

Let's calculate this:

i=67,740×0.05=3,387i = 67,740 \times 0.05 = 3,387

So, the interest Gabriel will earn in 6 months is:

3,387\boxed{3,387}

Would you like more details or have any questions?

Related Questions:

  1. How much interest would Gabriel earn in one year at the same rate?
  2. What would the interest be if the interest rate was compounded annually instead?
  3. How much total money will Gabriel have in his account after earning the interest?
  4. What would the interest be for different time periods, like 3 months or 9 months?
  5. How would the interest change if the rate were 8% instead of 10%?

Tip:

Always convert the time period into years when using the simple interest formula!

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Math Problem Analysis

Mathematical Concepts

Simple Interest
Percentages
Time in Years

Formulas

i = prt (Simple Interest Formula)

Theorems

Simple Interest Calculation

Suitable Grade Level

Grades 6-8