How much intrest will u earn on a 50
0 deposi placed in a asavings accoun for 6 months if you are paid at a simple intrest rate of 5 percent
To calculate the interest earned on a savings account with a simple interest rate, you will need the formula:
Simple Interest = Principal × Rate × Time
Where:
- Principal is the initial deposit amount
- Rate is the interest rate (as a decimal)
- Time is the duration in years
In this case, the principal is $500, the rate is 5% (or 0.05 as a decimal), and the time is 6 months (or 0.5 years).
Plugging these values into the formula:
Simple Interest = $500 × 0.05 × 0.5
Calculating the result:
Simple Interest = $12.50
Therefore, you will earn $12.50 as interest on a $500 deposit placed in a savings account for 6 months with a 5% simple interest rate.