Question

What is the simple interst on $32,000 at 7% interest for 6 months?

$13,440
$1,120
$6,720
$2,240

Answer 1

• Principal=P=32000
• Interest rate=R=7
• Time=0.5yr

Interest be I

`\\ \tt\hookrightarrow I=(PRT)/(100)=(32000(7)(0.5))/(100)=(112000)/(100)=1120\$`

Answer 2

• B. $1120

Explanation:

Use simple interest formula:

• I = Prt

Given:

• P = $32000
• r = 7% = 0.07
• t = 6 months = 0.5 year

Find the amount of interest:

• I = 32000*0.07*0.5 = 1120

Correct choice is B