To calculate simple interest, you can use the formula:
\[ \text{Simple Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial investment),
- \( r \) is the annual interest rate (in decimal form),
- \( t \) is the time the money is invested or borrowed for, in years.
For your investment:
- \( P = 100,000 \) dollars
- \( r = 12% = 0.12 \)
- \( t = 6 , \text{months} = 0.5 , \text{years} \)
Now plug the values into the formula:
\[ \text{Simple Interest} = 100,000 \times 0.12 \times 0.5 \]
\[ \text{Simple Interest} = 100,000 \times 0.06 \]
\[ \text{Simple Interest} = 6,000 \]
So, the simple interest on a $100,000 investment at an interest rate of 12% per year after 6 months is $6,000.