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Simple Interest, SMB-013

$2800 is invested in an account that earns simple interest at the rate of 4.0% per annum.

Calculate the total interest earned in the first six months.   (2 marks)

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`$56`

Show Worked Solution

`P = 2800,\ \ r = 4.0text(%),\ \ n = \frac{6}{12}=0.5`

`I` `= Prn`
  `= 2800 xx 4.0/100 xx 0.5`
  `= $56`