Calculate the simple interest on a $100000 investment at an interest rate of 12% a year after 6 months.
To calculate the simple interest on an investment, you can use the formula:
Simple Interest = Principal × Interest Rate × Time
Where:
- Principal = $100,000
- Interest Rate = 12% or 0.12 (converted to decimal form)
- Time = 6 months or 0.5 years
Plugging in these values into the formula:
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 would be $6,000.