Answer:
$569.80
Step-by-step explanation:
We can use the simple interest formula for this:
[tex]A = P (1 + rt)[/tex]
P = initial balance
r = annual interest rate
t = time
First, change 7.2% into its decimal form:
7.2% -> [tex]\frac{7.2}{100}[/tex] -> 0.072
Next, since we are calculating for 6 months (1/2 of a year), the annual interest rate will be 0.5. Now, plug in the values:
[tex]A=550(1+(0.072)(0.5))[/tex]
[tex]A=569.80[/tex]
The total amount owed in 6 months is $569.80
