An account earns annual simple interest. Find the balance of the account.
$250 at 4% for 1 year = $260
$2000 at 9% for 6 months = $?
$2000 at 9% for 6 months = $2090
To find the balance of the account, we need to calculate the simple interest.
The formula for calculating simple interest is:
Simple Interest = Principal (P) * Rate (R) * Time (T)
Given that the principal (P) is $2000, the rate (R) is 9%, and the time (T) is 6 months, we can plug these values into the formula:
Simple Interest = $2000 * 0.09 * (6/12)
Simplifying the equation:
Simple Interest = $2000 * 0.09 * 0.5
Simple Interest = $90
Now that we have calculated the simple interest, we can find the balance of the account by adding the interest to the principal:
Balance = Principal + Simple Interest
Balance = $2000 + $90
Balance = $2090
Therefore, the balance of the account after 6 months will be $2090.