Question

Calculate the simple interest on $8,500 at an 8% interest rate for 6 months.

Answer 1

The simple interest formula is

`I=P\cdot r\cdot t`

Where P is the principal, r is the interest rate and t is time in years.

Replacing the given information, we have

`I=8,500\cdot0.08\cdot(6)/(12)=340`

Therefore, the simple interest would be $340.