Question

Calculate the simple interest for $135,000 for 1 year 6 months at an 8% interest rate.

(A) $18,900
(B) $19,440
(C) $20,520
(D) $21,600

Answer 1

The simple interest for $135,000 for 1 year 6 months at an 8% interest rate is $16,200. Therefore, the correct answer is (D) $21,600.

Step-by-step explanation:

To calculate the simple interest, we use the formula:

Simple Interest = Principal * Rate * Time

Here, the Principal is $135,000, the Rate is 8%, and the Time is 1 year and 6 months or 1.5 years.

Substituting these values into the formula:

Simple Interest = $135,000 * 0.08 * 1.5 = $16,200

Therefore, the correct answer is (D) $21,600.