Answer:
S.I = $1,608,000
Step-by-step explanation:
Given the following data;
- Principal = $10.000.000
- Interest rate = 4%
- Time = 4 years
To find the simple interest, we would use the formula;
S.I = PRT
Where;
- S.I is the simple interest.
- P is the principal.
- R is the interest rate.
- T is the time.
Since the interest is being paid every two months (six times a year), the 4% interest will be divided by 6.
Thus: 4% every two months = [tex] 4 * \frac {2}{12} [/tex] = [tex] \frac {8}{12} [/tex] = 0.67% = 0.0067
4 years = 4 * 6 = 24 two-month years.
Substituting the values into the formula, we have;
S.I = 10.000.000 * 0.0067 * 24
S.I = $1,608,000
