Question

The following information is known about a savings account. Time = 6 years Interest rate = 1.9% Principal = $850 What amount of simple interest will be earned?

Answer 1

The amount of simple interest would be $ 96.90

Explanation:

Given,

Principal amount, P = $ 850,

Time, t = 6 years,

Annual simple interest rate, r = 1.9%,

Thus, the amount of simple interest,

`I = (P* r* t)/(100)`

`=(850* 1.9* 6)/(100)`

`=(9690)/(100)`

`=\$ 96.90`

Answer 2

I = PRT
T = 6
P = 850
I = 1.9% = 0.019

I = (850)(0.019)(6) = 96.90 <==