select the correct answer. calculate the simple interest. round to the nearest cent for, p = $7000, r = 6.5%…

select the correct answer. calculate the simple interest. round to the nearest cent for, p = $7000, r = 6.5% t = 6 months.\n(a) $227.50\n(b) 227.5\n(c) $225.70\n(d) $272.50

select the correct answer. calculate the simple interest. round to the nearest cent for, p = $7000, r = 6.5% t = 6 months.\n(a) $227.50\n(b) 227.5\n(c) $225.70\n(d) $272.50

Answer

Explanation:

Step1: Convert time to years

Since 1 year has 12 months, 6 months $t=\frac{6}{12}=0.5$ years.

Step2: Use simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P = 7000$, $r=6.5%=0.065$, and $t = 0.5$. Then $I=7000\times0.065\times0.5$. $I = 7000\times0.065\times0.5=227.5$

Answer:

A. $227.50