Question

Ravi deposited $950.00 into a saving account at his local bank. If the interest rate is 2.5%, then how much will he have after 6 months (Round your answer to the nearest cent)?

Answer 1

Hi Dear !
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Deposited Money   =  950$
Interest On money = 2.5 per month 
2.5 % of 950 = 23.75 $ per month 
In 6 moths he have = 950 + 6 X 23.75
                                 = 950+142.5 
                                 = 1092.5 $

Answer 2

P=$950
R=2.5%
T=6months = 1/2 years
I= PTR/100
I=(950*1*2.5)/(2*100)
I=$11.875
Amount =P+I
=$950+$11.875
=$961.875