Calculate Simple Interest for $770 at 16% for 6 Months

What’s the simple interest for $770 at 16% for 6 months?

Final answer: To calculate simple interest for $770 at 16% for 6 months, use the formula I = P × r × t, which gives an interest of $61.60.

Explanation:

How to Calculate Simple Interest

The question at hand involves calculating simple interest for a principal amount of $770 at an interest rate of 16% for a period of 6 months. Simple interest can be calculated using the formula:

I = P × r × t

Where:

I is the interest

P is the principal amount

r is the annual interest rate (in decimal form)

t is the time the money is borrowed for, in years

In this case:

P = $770

r = 16% or 0.16 (as a decimal)

t = 6 months or 0.5 years (since 6 months is half a year)

Using the simple interest formula, the calculation will be:

$770 × 0.16 × 0.5 = $61.60

Therefore, the simple interest accrued over 6 months on a principal of $770 at a 16% interest rate would be $61.60.