Question

Find the simple interest accumulated and the account balance.

1. Chris deposits $6,200 in an account that pays 12% annual simple interest for 4 years.
Formula:
Numbers:
Interest Earned: $
Account Balance: Principal + Interest Earned =
The simple interest is
The account balance is

Answer 1

Simple interest is: $2976

Account balance is: $9176

Explanation:

First, converting R percent to r a decimal

r = R/100 = 12%/100 = 0.12 per year,

then, solving our equation

I = 6200 × 0.12 × 4 = 2976

I = $ 2,976.00

The simple interest accumulated

on a principal of $ 6,200.00

at a rate of 12% per year

for 4 years is $ 2,976.00.