Given:
Principal = $1400
Simple rate of interest = 1.25%
Time = 6 month
To find:
The balance of the account after simple interest.
Solution:
The formula for simple interest is
[tex]I=\dfrac{P\times r\times t}{100}[/tex]
Where, P is principal, r is the rate of interest in % and t is time in years.
Time = 6 months
= [tex]\dfrac{6}{12}[/tex] year
= 0.5 year
Putting 1400, r=1.25, t=0.5 years.
[tex]I=\dfrac{1400\times 1.25\times 0.5}{100}[/tex]
[tex]I=\dfrac{875}{100}[/tex]
[tex]I=8.75[/tex]
Now, the amount is
[tex]A=P+I[/tex]
[tex]A=1400+8.75[/tex]
[tex]A=1408.75[/tex]
Therefore, the balance of the account after the simple interest is $1408.75.
