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:
where:
- (the principal amount)
- (the interest rate as a decimal, since 10% = 0.10)
- (time in years, since 6 months is half a year)
Now, plug in the values:
Let's calculate this:
So, the interest Gabriel will earn in 6 months is:
Would you like more details or have any questions?
Related Questions:
- How much interest would Gabriel earn in one year at the same rate?
- What would the interest be if the interest rate was compounded annually instead?
- How much total money will Gabriel have in his account after earning the interest?
- What would the interest be for different time periods, like 3 months or 9 months?
- 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