An account earns annual simple interest. Find the balance of the account.
$2000 at 9% for 6 months = $
To find the balance of the account, we need to calculate the simple interest earned and add it to the initial amount.
First, we need to calculate the interest earned:
Interest = (Principal * Rate * Time) / 100
Principal = $2000
Rate = 9% = 0.09 (converted to decimal)
Time = 6 months = 0.5 (converted to fraction of a year)
Interest = (2000 * 0.09 * 0.5) / 100
Interest = $90
Now, we add the interest earned to the initial amount to find the balance:
Balance = Principal + Interest
Balance = $2000 + $90
Balance = $2090
Therefore, the balance of the account after 6 months will be $2090.
To find the balance of an account that earns annual simple interest, we can use the formula:
Balance = Principal + (Principal * Rate * Time)
Where:
- Principal is the initial amount of money in the account ($2000 in this case)
- Rate is the annual interest rate expressed as a decimal (9% = 0.09)
- Time is the duration of the investment in years (6 months = 0.5 years)
Let's calculate the balance:
Balance = $2000 + ($2000 * 0.09 * 0.5)
= $2000 + ($900)
= $2900
Therefore, the balance of the account after earning 9% simple interest for 6 months is $2900.
I = PRT
I = 2,000 * 0.09 * 0.5
Add the interest to the principle.