Question

# Carla puts $625 into a savings account at an annual interest rate of 2.5%. if she does not withdraw or deposit any money, what is the interest that carla will earn at the end of 6 months?

Answer

$7.81

- Q:What is the interest rate for 6 months? A:2.5% divided by 2 because it's half year, which equals to 1.25%.
- Q:What is the interest that Carla will earn? A:The calculation for interest earned is principal (P) multiplied by the interest rate (R) multiplied by the time expressed as a fraction of a year (T). So, I = P * R * T. I = 625 * 1.25% * 6/12. After calculating, the interest Carla will earn is $7.81.