3-3Example 1

Find the simple interest earned on an investment of $500 at 7.5% for 6 months.

1. Write the simple interest formula.

I = prt

3-3Example 1

Find the simple interest earned on an investment of $500 at 7.5% for 6 months.

2. Write the decimal for 7.5%.

0.075

The time is not given in years.

6 months = 0.5 year

3-3Example 1

Find the simple interest earned on an investment of $500 at 7.5% for 6 months.

3. Substitute the principal, rate, and time into the formula.

I = 500 ● 0.075 ● 0.5

= 18.75

3-3Example 1

Find the simple interest earned on an investment of $500 at 7.5% for 6 months.

4. The amount of interest earned is $18.75.