Question

If $3000 is invested at 7% for 6 months, how much simple interest is earned?

Answer 1

First, you have to do $3000 times .07 (decimal form of 7%). That equals Assuming that the interest is 7% each month, your interest would be $210 a month. Then you would times that by 6 months. That would be $1260.

Answer 2

I don't agree with the other answer here. 7% is the amount of interest that can be earned each year, not each month. So, since you would earn $210 over the course of a year, you would earn $105 over six months.