A bank account has a beginning balance of $560.00. After 6 months, the balance in the account has increased to $572.60. What interest rate is being earned annually on this account?

Question

anonymous · Answer

please help me

anonymous · Answer

i will fan and give you a medal

dayakar · Answer

what is the difference after 6 months, can u find it

anonymous · Answer

i am terrable at math

mathmale · Answer

This question is ambiguous in that the frequency at which interest is paid is not specified.   If interest were compounded monthly, then the formula for finding the amount would have the form$$A=P(1+\frac{ r }{ 12 })^{12t}$$

mathmale · Answer

Calling yourself "terrible at math" doesn't help you (or anyone else) in the least.  Kindly stop posting such negative sentiments.

If interest were paid quarterlly, the apprpriate formula would be$$A=P(1+\frac{ r }{ 4 })^{4t}$$

mathmale · Answer

In each case, r represents the annual interest rate, t represents the number of years, and the numerals 12 and 4 represent the number of times interest is paid annually.

mathmale · Answer

A is the Amount, the amount of money accumulated as interest is paid.
P is the Principal, the beginning amount of money.

anonymous · Answer

ok thnx

retireed · Answer

@mathmale 

Just my thoughts on these ambiguous interest rate questions posted here.... 

I have "generally" concluded that if there is no "frequency at which interest is paid is not specified", the question is referring to a simple interest rate calculation based on the fact that there is no other way to anticipate how to solve the problem.  If you can understand my poor way of explaining this.

I think the equation required for this problem is ...

          A = P e^rt            where A, P are given and t is 0.5 a year  solve for r

anonymous · Answer

ok thank you

retireed · Answer

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