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
$6,000
$7,200,000
$72,000
To calculate the simple interest, we use the formula:
Simple Interest = Principal * Interest Rate * Time
where Principal is the initial investment amount, Interest Rate is the annual interest rate, and Time is the time period in years.
In this case, the Principal is $100,000, the Interest Rate is 12% (or 0.12 as a decimal), and the Time is 6 months (or 0.5 years).
Simple Interest = $100,000 * 0.12 * 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.