What is the simple interest of a note that has a face value of $12,000, a rate of 8%, and a term of 1 year?

James Morris asked May 14, 2023

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James Morris asked May 14, 2023

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Solution:

Given:

$\begin{gathered} P=\text{ \$}12,000 \\ R=8\text{ \%} \\ T=1year \end{gathered}$

Using the simple interest formula,

$\begin{gathered} I=(PTR)/(100) \\ I=(12000*1*8)/(100) \\ I=\text{ \$}960 \end{gathered}$

Therefore, the simple interest is $960.

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