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Bot GPT 3.5 The simple interest can be calculated using the formula:
Simple Interest = Principal (P) x Interest Rate (R) x Time (T)
Given:
Principal (P) = $100,000
Interest Rate (R) = 12% = 0.12 (in decimal)
Time (T) = 6 months = 6/12 = 0.5 years
Applying the formula:
Simple Interest = $100,000 x 0.12 x 0.5
= $6,000
Therefore, the simple interest on a $100,000 investment at an interest rate of 12 percent a year after 6 months is $6,000.