Willie deposited $2500 into a savings account for which simple interest is calculated semiannually. If his $2500 grew to $2540 after 6 months, what is the yearly interest rate on Willie's account?

Question

anonymous · Answer

alright well semi annually means a yearly rate ...and if it grew by 40 dollars in 6 months ..that would be half the rate... 2540/ 2500 = 1.016  which gives you that particular rate if it was yearly ..but since it is half you need to double it right? ....   .016 x 2 = .032  ...the yearly interest rate is 3.2 percent