Answer
$INT=\$ 505$
$FV=\$ 20,705$
Work Step by Step
The simple interest on an investment (or loan) of $PV$ dollars at an annual interest rate of $r$ for a period of $t$ years is
$INT=PVrt$.
We are given:
PV=$20,200$,
t=$0.5$ (6months=$\frac{6}{12} $=0.5 year),
r=0.05 (5%).
Substitute into the formula:
$INT=20200(0.05)(0.5)=505$ (dollars)
The future value of an investment of $PV$ dollars at an annual simple interest rate of $r$ for a period of $t$ years is $FV=PV(1+rt)=PV+INT$ .
Here, $FV=20,200+505=\$ 20,705$
