Final answer:
To calculate simple interest for $770 at 16% for 6 months, use the formula I = P × r × t, which gives an interest of $61.60.
Step-by-step explanation:
How to Calculate Simple Interest
The question at hand involves calculating simple interest for a principal amount of $770 at an interest rate of 16% for a period of 6 months. Simple interest can be calculated using the formula:
I = P × r × t
Where:
- I is the interest
- P is the principal amount
- r is the annual interest rate (in decimal form)
- t is the time the money is borrowed for, in years
In this case:
- P = $770
- r = 16% or 0.16 (as a decimal)
- t = 6 months or 0.5 years (since 6 months is half a year)
Using the simple interest formula, the calculation will be:
$770 × 0.16 × 0.5 = $61.60
Therefore, the simple interest accrued over 6 months on a principal of $770 at a 16% interest rate would be $61.60.