the principle B is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money,. Assume there are 360 days in a year and round to the nearest cent. P=$4000, r=6.0%and t=6 month
I = prt
I = 4,000 * 0.06 * 0.5
I = ?
120
Suppose that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest. Suppose that you can put 40% down. Assume that the monthly cost to finance $1,000 is $6.00. What is the total amount of interest paid on the 30 year loan?
To find the simple interest owed for the use of the money, you can use the formula:
Simple Interest = (Principal * Rate * Time) / 100
Plugging in the given values:
Principal (P) = $4000
Rate (r) = 6.0% = 6.0/100 = 0.06 (in decimal form)
Time (t) = 6 months
Using the formula:
Simple Interest = (4000 * 0.06 * 6) / 100
Now we can calculate the simple interest:
Simple Interest = (2400) / 100
Simple Interest = $24.00
Rounding to the nearest cent, the simple interest owed for the use of the money would be $24.00.