Answer:
$126
Explanation:
At a simple annual interest rate of 3%, the following formula might be used to determine the annual interest for a $4200 principal:
Interest is calculated as follows: Principal * Rate * Time
Where,
Capital = $4200
Rate = 3% (expressed as a decimal by dividing by 100) (expressed as a decimal by dividing by 100)
t = one year
When we enter the values, we obtain:
Interest is equal to $4200 multiplied by 0.03 times one.
Therefore, $126 would be the annual interest for a $4200 principal at a basic annual interest rate of 3%.