You want to calculate the interest on $3020 at 5% interest per year after 6 6 month period(s).
The formula we'll use for this is the simple interest formula, or:
Where:
P is the principal amount, $3020.00.
r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.
t is the time involved, 6....6 month period(s) time periods.
Since your interest rate is "per year" and you gave your time interval in "6 month period(s)" we need to convert your time interval into "year" as well.
Do this by dividing your time, 6- 6 month period(s), by two (2), since there's two 6-month periods in 1 year.
So, t is 3....year time periods.
To find the simple interest, we multiply 3020 × 0.05 × 3 to get that:
The interest is: $453.00
Usually now, the interest is added onto the principal to figure some new amount after 6 6 month period(s),
or 3020.00 + 453.00 = 3473.00. For example:
If you borrowed the $3020.00, you would now owe $3473.00
If you loaned someone $3020.00, you would now be due $3473.00
If owned something, like a $3020.00 bond, it would be worth $3473.00 now.
