Question

Vincent borrowed $500 from Mitchell for six months. How much interest will Mitchell earn if he charges Vincent a simple interest rate of 3 percent?. simple interest = P × r × t

Answer 1

Principal P = $500, Rate = 3 % = 3/100 = 0.03 would assume per year,
Time t = 6 months = (6/12) year = 0.5 year.

Simple Interest, I = P*r*t

= 500*0.03*0.5 = 7.5

Simple interest = $7.50

Answer 2

Make use of the given equation for simple interest, I = P x r x t where I is the interest, P is the principal amount, r is the rate and t is time in years. Plug in to the equation the given values,
I = ($500) x 0.03 x 0.5 = $7.5
Thus, the simple interest is $7.5.