Question

In a $13,500 loan with an interest rate of 6%, what is the amount of semiannual interest payment?

A)
$810
B)
$405
C)
$20,250
D)
$59,655

Answer 1

The amount of semiannual interest payment is $405.

Step-by-step explanation:

The amount of semiannual interest payment can be calculated using the simple interest formula:

Interest = Principal x Interest Rate x Time

In this case, the principal amount is $13,500 and the interest rate is 6%. Since the interest is paid semiannually, the time period is 1 year and we need to divide the interest rate by 2.

Using the formula, the semiannual interest payment is:

Interest = $13,500 x (6% / 2) x 1

Interest = $13,500 x 0.03 x 1 = $405

Therefore, the amount of semiannual interest payment is $405.