Question

Monty invested 8600 in a savings account with a yearly interest rate of 5% for 12 years how much simple interest did he earn

Answer 1

I=prt
I=8,600×0.05×12
I=5,160

Answer 2

Simple interest = $5,160

Explanation:

Given: Monty invested 8600 in a savings account with a yearly interest rate of 5% for 12 years.

Formula:
`I=PRT`

where, P is principle (P=8600)

R is rate of interest (R=0.05)

T is time period (T=5)

I is simple interest (I=?)

Therefore,

`I=8600* 0.05* 5`

`I=5160`

Hence, The simple interest in 12 years is $5,160