Find total amount in an account opened with $500 after 6 months if interest is .75% a year?

Question

 I know the answer (provided in my book) but I want to understand how to solve it. It is not provided. 

 

"Ed opens an insured money market account with $500. How much money will he have after 6 months if the interest rate is .75% a year?"

 

A: $501.88  but how????

Answer 1

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Answer 2

i = p(r/n)^nt

i = 500(0.0075/12)^0.5

i = 500(0.000625)^0.5

i = 500(0.025)

i = 12.5