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Marc deposits $840 into a savings account. The account pays 2% simple interest on an annual basis. If he does not add or withdraw money from the account, how much interest will he earn after 6 months? Round to the nearest cent.

Respuesta :

Answer:

Interest earned will be $8.40  over 6 months.

Explanation:

Step 1 - let's find out how much interest is earned over 1 year:

($840/100) * 2 = $16.8  -  this is how much Marc would've earned over one year if he meets all criterias (No further deposits or withdrawals)

Step 2 - let's find out what would've been his interest in one month:

$16.8 / 12 = $1.4  - this is how much would've he earned per month.

Step 3 - let's find out how much he would've earned on 6 months:

$1.4 * 6 = $ 8.4. Rounded to nearest cent: $8.40

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