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Calculate the simple interest earned. round to the nearest cent. p = $5,000, r = 6.6%, t = 6 months

User Vandelay
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Final answer:

The simple interest earned on a $5,000 investment at a 6.6% annual rate over 6 months is $165.00, after converting the rate to decimal form and the time to years.

Step-by-step explanation:

To calculate the simple interest earned on a $5,000 investment at a rate of 6.6% for 6 months, you can use the simple interest formula:

Interest = Principal × rate × time

First, convert the annual interest rate to a decimal by dividing by 100:

6.6% ÷ 100 = 0.066

Next, because time is in months, convert it to years by dividing by 12:

6 months ÷ 12 = 0.5 years

Now, you can calculate the interest:

$5,000 × 0.066 × 0.5 = $165

The simple interest earned is $165.00, rounded to the nearest cent.

User VingInMedina
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