1. Jackie takes out a simple interest loan for $800 at a rate of 3% per year. How much interest will she collect in the first 6 months?
$12
$144
$30
$944
2. Chris deposits $320 into an account that earns 3.5% interest per year. What is the balance in the account after 4 years?
$448.00
$331.00
$364.80
$768.00
1. The interest collected in the first 6 months can be calculated as:
Interest = Principal x Rate x Time
Time = 6 months = 0.5 years
Therefore, Interest = $800 x 0.03 x 0.5 = $12
So the answer is $12.
2. The balance in the account after 4 years can be calculated using the formula:
Balance = Principal x (1 + Rate)^Time
Where:
Principal = $320
Rate = 3.5% per year = 0.035
Time = 4 years
Therefore, Balance = $320 x (1 + 0.035)^4 = $364.80
So the answer is $364.80.
To calculate the interest in the first question, we need to use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, the principal is $800, the rate is 3% per year, and the time is 6 months. However, the rate is given per year, so we need to adjust it for the 6-month period.
Since 6 months is half a year, we need to divide the rate by 2:
Adjusted Rate = 3% / 2 = 1.5%
Now we can plug all the values into the formula:
Interest = $800 × 1.5% × 6/12
Simplifying, we get:
Interest = $800 × 0.015 × 0.5 = $12
So, the answer is $12.
In the second question, we need to calculate the balance in the account after 4 years. Again, we can use the formula for simple interest:
Balance = Principal + Interest
The principal is $320, and the interest rate is 3.5% per year. We can calculate the interest using the formula:
Interest = Principal × Rate × Time = $320 × 3.5% × 4
Simplifying, we get:
Interest = $320 × 0.035 × 4 = $44.80
Now we can calculate the balance:
Balance = $320 + $44.80 = $364.80
So, the answer is $364.80.
1. To calculate the interest Jackie will collect in the first 6 months, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal is $800, the rate is 3%, and the time is 6 months (or 0.5 years).
Plugging in the values, we have:
Interest = $800 * 0.03 * 0.5
= $12
Therefore, Jackie will collect $12 in interest in the first 6 months.
The correct answer is: $12
2. To calculate the balance in Chris' account after 4 years, we need to use the formula for compound interest:
Balance = Principal * (1 + Rate)^Time
In this case, the principal is $320, the rate is 3.5% (or 0.035), and the time is 4 years.
Plugging in the values, we have:
Balance = $320 * (1 + 0.035)^4
= $320 * 1.15365
= $368.80 (rounded to two decimal places)
Therefore, the balance in Chris' account after 4 years is $368.80.
The correct answer is: $364.80