Question

Question

Calculate the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months.(1 point)
Responses

Answer 1

The simple interest can be calculated using the formula:

Simple Interest = Principal (P) x Interest Rate (R) x Time (T)

Given:
Principal (P) = $100,000
Interest Rate (R) = 12% = 0.12 (in decimal)
Time (T) = 6 months = 6/12 = 0.5 years

Applying the formula:

Simple Interest = $100,000 x 0.12 x 0.5
= $6,000

Therefore, the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months is $6,000.