If you borrow \( \$ 950 \) at \( 26 \% \) simple interest for 6 months, how much do you owe in interest? Enter an integer or decimal number, accurate to at least 2 decimal places [more..] \( > \) Next Question

To calculate the interest owed on a simple interest loan, you can use the formula: Interest = Principal × Rate × Time. Here, the principal is \( \$ 950 \), the rate is \( 26\% \) (or 0.26 in decimal), and the time period is \( 6 \) months, which is \( 0.5 \) years. So, Interest = \( 950 \times 0.26 \times 0.5 = 123.50 \). Thus, you owe \( \$ 123.50 \) in interest. Another fun fact: Simple interest is super straightforward! Unlike compound interest, it doesn't grow on previously earned interest. This means you can easily calculate how much you'll owe without worrying about complex formulas or compounding periods. It’s like borrowing from a friend and just knowing you'll pay back exactly what you’ve taken without any unexpected surprises!