$2,100 is invested for 6 months in a savings account with a rate of 7.5% simple interest per year.
Find the interest.

Question

Quizplus · Accepted Answer

First, we need to find the interest for 6 months (half a year). 
Simple interest formula: I = P*r*t, where I is the interest, P is the principal (initial amount), r is the annual interest rate, and t is the time in years. 
Since the rate is given as annual, we need to divide it by 2 to get the rate for 6 months: 
r = 7.5%/2 = 0.075/2 = 0.0375 
t = 6 months / 12 months/year = 0.5 year 
I = $2,100 * 0.0375 * 0.5 = $78.75 
Therefore, the answer is B) $78.75. The formula for simple interest is:

Interest = (Principal x Rate x Time) / 100

Here, Principal = $2,100, Rate = 7.5% per year and Time = 6/12 years = 0.5 years.

Plugging in the values, we get:

Interest = (2100 x 7.5 x 0.5) / 100 
= $78.75

Therefore, the interest earned is $78.75. The correct answer is B.

$2,100 Is Invested for 6 Months in a Savings Account