Question

Simpson deposits $1,200 in a savings account that earns simple interest at the rate of 5%

per year. What interest does he earn at the end of 1 year?

Answer 1

$60

Explanation:

SI = (PRT)/100

SI = Simple Interest

P = Principal

R = Rate ( in decimal form)

T = Time

SI = (1200 x .5 x 1)/100

SI = 6000 / 100

SI = 60