Chapter 7, Problem 48CR

To determine

To Calculate: The balance amount of a deposit that earns a simple interest.

Answer to Problem 48CR

The balance of the account after $6$ months is $\$918$ .

Explanation of Solution

Given Information: The principal amount is $\$900$ , the simple interest rate is $4\%$ per annum and the time is $6$ months ( $0.5$ years).

Formula Used:$A=P\left(1+rt\right)$

Where, $A$ is the balance amount, $P$ is the initial deposit amount, $r$ is the annual interest as a decimal and $t$ is the time in years.

Calculation: The annual interest rate $4\%$ written as a decimal is $0.04$

Put the given values in the formula to write

  $\text{A}=900\cdot \left(1+0.04\times 0.5\right)=900\times 1.02=918$

Therefore, the balance of the account after $6$ months is $\$918$