Question

Darius has a 6
-month loan for $500
. He must pay 5.6%
annual interest on the loan. Using the formula for simple interest, I=Prt
, where I
is interest owed, P
is the amount borrowed, r
is the rate as a decimal, and t
is time in years, find the amount of interest owed by Darius after 6
months.

Answer 1

To calculate the amount of interest owed by Darius after 6 months using the formula for simple interest \( I = Prt \), we need to identify the values for \( P \), \( r \), and \( t \):

- \( P = 500 \) (the principal amount or the amount borrowed)
- \( r = 5.6\% = 0.056 \) (the annual interest rate as a decimal)
- \( t = \frac{6}{12} = 0.5 \) (the time in years since 6 months is half a year)

Now we can substitute these values into the formula:

\[
I = Prt = 500 \times 0.056 \times 0.5
\]

Calculating each part step by step:

1. \( 500 \times 0.056 = 28 \)
2. \( 28 \times 0.5 = 14 \)

Thus, the amount of interest owed by Darius after 6 months is \( \boxed{14} \) dollars.