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Solve.

Daniel put $1,500 into a savings account. The simple interest rate is 4.5%. How much interest will Daniel earn in 1 month? in 6 months? in 12 months?

Understand Read the problem. Write what you know.

Daniel invests $1,500 at an interest rate of 4.5%.

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Plan Pick a strategy. One strategy is to solve a simpler problem.

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Solve Use the simple interest formula to calculate the interest for 1 month, 6 months, and 1 year.

1 month I = 1,500 ● 0.045 ● = 5.625

6 months I = 1,500 ● 0.045 ● 0.5 = 33.75

12 months I = 1,500 ● 0.045 ● 1 = 67.50

I = prt

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Check The amount of interest should increase as the number of months increases.