Question

Calculate the simple interest on $8,500 at an 8% interest rate for 6 months.

Answer 1

The simple interest formula is

$I=P\cdot r\cdot t$

Where P is the principal, r is the interest rate and t is time in years.

Replacing the given information, we have

$I=8,500\cdot0.08\cdot\frac{6}{12}=340$

Therefore, the simple interest would be $340.