What simple annual interest rate would cause a $120 deposit to grow to $125 in 6 months?
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To solve this question, we have to rearrange the simple interest formula, I=PRT so that the R is by itself. Note that the I (interest) is equal to 5 (125 - 120). Note also that the time component T of the formula is 6/12. On the BAII Plus, press 5 divide 120 divide 6 x 12 = to see the answer. On the HP12C, press 5 ENTER 120 divide 6 divide 12 x to see the answer.