Calculate the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months.(1 point)
Responses
$72,000
$72,000
$6,000
$6,000
$7,200,000
$7,200,000
$600,000
$600,000
To calculate the simple interest, we can use the formula:
Simple Interest = (Principal x Interest Rate x Time)
Given that the principal (P) is $100,000, the interest rate (R) is 12% (or 0.12), and the time (T) is 6 months (or 0.5 years), we can plug these values into the formula:
Simple Interest = ($100,000 x 0.12 x 0.5) = $6,000
Therefore, the correct answer is $6,000.
Find the value after five years of a $3,000 savings account that pays 3% interest compounded yearly. Round the answer to two decimal places.(1 point)
$
To calculate the value after five years, we can use the formula for compound interest:
Future Value = Principal x (1 + Interest Rate)^Time
Given that the principal (P) is $3,000, the interest rate (R) is 3% (or 0.03), and the time (T) is 5 years, we can plug these values into the formula:
Future Value = $3,000 x (1 + 0.03)^5
Future Value = $3,000 x (1.03)^5
Future Value ≈ $3,464.10
Therefore, the value after five years of a $3,000 savings account that pays 3% interest compounded yearly is approximately $3,464.10.