Calculate the simple interest on $100,000 investment on an interest rate of 12% a year after six months

Answer 1

To calculate the simple interest on a $100,000 investment with an interest rate of 12% per year after six months, we can use the formula:

Simple Interest = (Principal × Rate × Time) ÷ 100

First, we need to convert the interest rate to a decimal by dividing it by 100:
12% ÷ 100 = 0.12

Next, we need to calculate the time in years. Since the interest is for six months, we divide it by 12 to get it in terms of years:
6 months ÷ 12 = 0.5 years

Now we can plug the values into the formula:
Simple Interest = (100,000 × 0.12 × 0.5) ÷ 100
= (12,000 × 0.5) ÷ 100
= 6,000 ÷ 100
= $60

Therefore, the simple interest on a $100,000 investment at an interest rate of 12% per year after six months is $60.

Answer 2

The answer choices are only 6000 600,000 72,000 or 7.2 million.

Answer 3

I apologize for the mistake. Let's recalculate the simple interest using the correct formula:

Simple Interest = (Principal × Rate × Time) / 100

Principal = $100,000
Rate = 12% = 12/100 = 0.12
Time = 6 months = 6/12 = 0.5 years

Simple Interest = (100,000 × 0.12 × 0.5) / 100
= (12,000 × 0.5) / 100
= 6,000 / 100
= $60

Therefore, the simple interest on the $100,000 investment at an interest rate of 12% per year after six months is $60.