Question

B. Z S 16. What is the simple interest payble on a loan of Birr 6000 borrowe at 8% after 6 months is birr 7500? A. 5990 B. 600 C. 5900 D. 6900​

Answer 1

a year has 12 months, so 6 months is really 6/12 of a year.

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$6000\\ r=rate\to 8\%\to (8)/(100)\dotfill &0.08\\ t=years\to (6)/(12)\dotfill &(1)/(2) \end{cases} \\\\\\ I = (6000)(0.08)((1)/(2)) \implies I = 240`