Business FinancesQuestion 44 of 1605
A contractor takes out a $50,000 equipment loan at 8% annual interest. What is the simple interest owed for 6 months?
a.$2,000
b.$4,000
c.$8,000
d.$400
Explanation
Simple interest = Principal × Rate × Time = $50,000 × 0.08 × 0.5 = $2,000. For 6 months (half year), use 0.5 as the time factor.
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