KEPT $200 IN HER SAVINGS ACCOUNT FOR A YEAR. THE BANK PAYS 6 1\2% INTEREST PER YEAR. HOW MUCH INTEREST DID SHE RECEIVE AT THE END OF 1 YEAR
To calculate the interest that received at the end of one year, we'll need to know the formula for calculating simple interest:
Interest = (Principal amount) × (Interest rate) × (Time period)
In this case, the principal amount is $200, the interest rate is 6.5% (or 0.065 as a decimal), and the time period is 1 year.
Plugging in these values into the formula, we can calculate the interest:
Interest = $200 × 0.065 × 1
Simplifying the calculation:
Interest = $13
Therefore, received $13 in interest at the end of one year.