Vincent borrowed $500 from Mitchell for six months. How much interest will Mitchell earn if he charges Vincent a simple interest rate of 3 percent?

QUESTION POSTED AT 01/06/2020 - 03:57 PM

Answered by admin AT 01/06/2020 - 03:57 PM

Principal P = $500,  Rate = 3 % = 3/100 = 0.03  would assume per year, 
Time t = 6 months = (6/12) year = 0.5 year.

Simple Interest, I = P*r*t
              
                             = 500*0.03*0.5 = 7.5

And so therefore your answer is 7.5
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