Question

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?

simple interest = P × r × t
A.
$7.50
B.
$15
C.
$75

Answer 1

assuming that's a yearly interest rate, you can simply plug in P = 500 (the principal amount), r = 0.03 (the interest rate) and t = 0.5 years (since 6 months = 0.5) and solve for the simple interest