Question

what is the simple interest if the principal is $12,000 in the interest rate is 4.25% and the time is 5 years?

Answer 1

$2,550

Explanation:

The applicable formula for simple interest is ...

I = Prt

Filling in the given values and doing the arithmetic, we find the interest to be ...

I = $12,000×0.0425×5 = $2,550