Question

$12,000 is invested for 4 years at a

simple interest rate of 1.5%. How much
does the investment earn?

Answer 1

I=prt. Sub in what you know: I=12,000(.015)(4). Multiply: I=12,000(.06). Multiply again: I=720. The investment earned $720 :)

Answer 2

The investment is $720.

Explanation:

Given : $12,000 is invested for 4 years at a simple interest rate of 1.5%.

To find : How much does the investment earn?

Solution :

Applying simple interest formula,

`SI=P* R* T`

Where, P is the principal P=$12000

R is the interest rate R=1.5%=0.015

T is the time T=4 years

Substitute the value in the formula,

`SI=12000* 0.015* 4`

`SI=720`

The investment is $720.