Question

How much simple interest is earned on $2000 at 4% interest for 6 months?

Give your answer in dollars and cents. Round your answer to the nearest hundredth.



Simple Interest
I = p • r • t

Answer 1

Given the formula for simple interest:
l = p * r * t
We can get the amount.
The start amount is $2000. the rate is at 4%. The time is at 6 months.

Using the formula,
l = p * r * t
l = 2000 * 0.04 * 6
l = $480.00

So the simple interest is 480.00