Question

If Sam invested $3,000 and he earned $300 over six months, the return is _____.

Answer 1

The APR would be 20%. This would yield Sam $600 in a year, so he would earn $300 in six months as long as the interest was non compounding. The interest rate is multiplied by the amount of principal, and then multiplied by the amount of time. In this case the time is 6/12.