A bank account has a beginning balance of 560.00. After 6 months the balance in the account has increased to, $572.60. What interest rate is being earned annually on this account?

Answer 1

#R = 4.5%#

Because the time period is not more than 1 year, it does matter whether the interest is simple or compound.

Over 6 months, #$12.60# has been earned in interest.
#SI = (PRT)/100" "larr# substitute what you know.
#12.60 = (560 xx R xx 6)/(100xx12)" " 6/12 = 1/2# year
Now solve for #R# by isolating it on the right.
#(12.60 xx 100xx12)/(560 xx6) = R#
#R = 4.5#
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Answer 2

To find the annual interest rate, we can use the formula for simple interest:

[I = P \times r \times t]

where:

  • (I) is the interest earned,
  • (P) is the principal amount (beginning balance),
  • (r) is the annual interest rate (in decimal),
  • (t) is the time the money is invested or borrowed for (in years).

Given:

  • (P = 560.00),
  • (I = 572.60 - 560.00 = 12.60),
  • (t = \frac{6}{12} = 0.5) (since it's 6 months),

Plugging the values into the formula:

[12.60 = 560.00 \times r \times 0.5]

[r = \frac{12.60}{560.00 \times 0.5} = 0.045]

So, the annual interest rate being earned on this account is 4.5%.

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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.

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