Kiron invests $22,700 at 14% interest. About how much interest will he earn in 6 months?
a.$19,068
b.$3,178
c.$1,589
d.$530
(0.14 * 22,700)/2 = ?
1,589
To calculate the interest that Kiron will earn in 6 months, you can use the formula:
Interest = Principal * Rate * Time
Where:
- Principal is the initial amount invested ($22,700 in this case)
- Rate is the interest rate per year (14% or 0.14 in decimal form)
- Time is the duration of investment in years (6 months or 0.5 in decimal form)
Calculating the interest, we have:
Interest = 22,700 * 0.14 * 0.5 = $797
Therefore, Kiron will earn $797 in interest in 6 months. None of the given options match the calculated value, so it seems like there may be an error in the provided answer choices.