Question

You put $\$550$ in an account that earns $4.4\%$ simple interest per year. How much interest do you earn $6$ months?

• A. $\$1.21$
• B. $\$12.10$
• C. $\$121.00$
• D. $\$145.20$

Answer 1

The correct option is B

$\$12.10$

Given:

Principle amount, P = $\$550$

Rate of interest, R = $4.4\%$

Time, T = $6$ months = $\frac{1}{2}$year = $0.5$ year.

We know that formula for simple interest is, $\mathrm{SI}=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100}$.

$$\begin{gathered} \Rightarrow \mathrm{SI}=\frac{550\times 4.4\times 0.5}{100} \\ \Rightarrow \mathrm{SI}=\frac{1210}{100} \\ \Rightarrow \mathrm{SI}=12.10 \end{gathered}$$

Therefore, the simple interest is $\$12.10$.

Hence, the correct option is B.