Find the accumulated amount at the end of 6 months on an $400 deposit in the bank paying simple interest at the rate of 3% year.
A) The accumulated amount is $411.
B) The accumulated amount is $413.
C) The accumulated amount is $416.
D) The accumulated amount is $418.
E) The accumulated amount is $406.

Question

Find the accumulated amount at the end of 6 months on an $400 deposit in the bank paying simple interest at the rate of 3% year. ​
A) The accumulated amount is $411.
B) The accumulated amount is $413.
C) The accumulated amount is $416.
D) The accumulated amount is $418.
E) The accumulated amount is $406.

Quizplus · Accepted Answer

The accumulated amount can be calculated using the formula for simple interest: A = P(1 + rt), where A is the accumulated amount, P is the principal amount ($400), r is the annual interest rate (3% or 0.03), and t is the time in years (0.5 years for 6 months). Thus, A = $400(1 + 0.03*0.5) = $400(1 + 0.015) = $400 * 1.015 = $406.

Find the Accumulated Amount at the End of 6 Months