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22 January, 19:13

How much simple interest is earned on $2000 at 4% interest for 6 months?

Give your answer in dollars and cents. Round your answer to the nearest hundredth.

Simple Interest

I = p • r • t

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Answers (1)
  1. 22 January, 19:29
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    Given the formula for simple interest:

    l = p * r * t

    We can get the amount.

    The start amount is $2000. the rate is at 4%. The time is at 6 months.

    Using the formula,

    l = p * r * t

    l = 2000 * 0.04 * 6

    l = $480.00

    So the simple interest is 480.00
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