Answer: The interest is: $150.00
The formula we'll use for this is the simple interest formula, or:
Where:
P is the principal amount, $6000.00.
r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.
t is the time involved, 6....month(s) time periods.
Since your interest rate is "per year" and you gave your time interval in "month(s)" we need to convert your time interval into "year" as well.
Do this by dividing your time, 6- month(s), by 12, since there's 12 months in 1 year.
So, t is 0.5....year time periods.
To find the simple interest, we multiply 6000 × 0.05 × 0.5 to get that:
The interest is: $150.00
