business math

Question

If $3.000 is invested at 7% for 6 months. how much simple interest is earned? a) $105.00 b) $150.50 c)$180.00 d)$210.00

Answer 1

to compute simple interest you want to take

I = P * r * t

for this scenario that means taking

I = 3000 * 0.07 * 6/12

I = 105

meaning that the simple interest here is $105

Answer 2

I believe you meant your simple interest to be 3 thousand, and not 3.

 

 

Use the simple interest formula.

 

I = PRT

 

where:

I = simple interest

P = investment

R = interest rate (decimal form)

T = time (in years)

 

Given:

P = 3000

R = 0.07

T = 0.5

 

Plug in these values into the formula to solve or I.  This will give you the simple interest.