The formula for simple interest is the following:
[tex]S=Prt[/tex]
In this formula, [tex]S[/tex] is the amount of interest, [tex]P[/tex] is the principal (or initial) amount, [tex]r[/tex] is the interest rate, and [tex]t[/tex] is the length f time, typically in years.
First, let's make a couple of changes to how we wrote down the variables.
- Change the interest rate, [tex]6\%[/tex], to the decimal value [tex]0.06[/tex].
- Convert the length of time to years. 180 days divided by 360 days per year equals [tex]0.5[/tex] years.
Substitute in the values and solve with a calculator.
[tex]\begin{aligned}S&=16,500\cdot0.06\cdot0.5\\&=\boxed{495}\end{aligned}[/tex]
