Answer:
$8.40
Explanation:
From the given statement:
Principal = $840
Time = 6 Months
Rate = 2%
Note that Time must be in Years, therefore:
Time = 6 Months = 6/12 = 0.5 Years
[tex]\begin{gathered} \text{Simple Interest }=P\times R\times T \\ =840\times2\%\times0.5 \\ =840\times0.02\times0.5 \\ =\$8.40 \end{gathered}[/tex]
The simple interest earned is $8.40
