Calculate the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months.(1 point)
Responses
$600,000
$600,000
$7,200,000
$7,200,000
$6,000
$6,000
$72,000
To calculate the simple interest, we need to use the formula:
Simple Interest = (Principal) x (Interest Rate) x (Time)
Given:
Principal = $100,000
Interest Rate = 12% or 0.12
Time = 6 months or 0.5 years
Substituting the values into the formula:
Simple Interest = $100,000 x 0.12 x 0.5
Simple Interest = $6,000
Therefore, the simple interest on a $100,000 investment at an interest rate of 12% a year after 6 months is $6,000.