Calculate the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months.(1 point) Responses $6,000 $6,000 $600,000 $600,000 $7,200,000 $7,200,000 $72,000
To calculate the simple interest, we use the formula:
Simple interest = Principal * Rate * Time
In this case, the principal (P) is $100,000, the rate (R) is 12% per year, and the time (T) is 6 months.
First, we need to convert the time from months to years.
6 months is equal to 6/12 = 0.5 years.
Next, we plug the values into the formula:
Simple interest = $100,000 * 0.12 * 0.5
Simplifying the expression:
Simple interest = $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.
Answer: $6,000