Calculate the simple interest on a hundred thousand dollar investment at an interest rated twelve percent a year after six months
To calculate the simple interest on a $100,000 investment at an interest rate of 12% per year after six months, you need to divide the interest rate by 2 since the time period is only six months (1 year = 12 months).
Step 1: Find the interest rate for six months:
Interest rate for 6 months = 12% / 2 = 6%
Step 2: Calculate the simple interest using the formula:
Simple Interest = (Principal * Rate * Time) / 100
Simple Interest = ($100,000 * 6 * 6) / 100 = $36,000
Therefore, the simple interest on a $100,000 investment at an interest rate of 12% per year after six months would be $36,000.