Final answer:
To calculate the amount of interest an account would earn in one year at a 6% annual interest rate, you use the simple interest formula. For a principal of $1,200, the simple interest for one year would be $1,200 × 0.06 = $72.
Step-by-step explanation:
If a bank pays 6% interest per year on savings accounts, the interest that would be earned on an account of $1,200 in one year can be calculated using the simple interest formula. To find the interest, you multiply the principal amount by the interest rate and the number of periods (years).
Calculating Simple Interest
The formula for simple interest is:
Interest = Principal × Rate × Time
In this case, the principal is $1,200, the interest rate is 6% (or 0.06), and time is 1 year.
So, the calculation is $1,200 × 0.06 × 1 = $72.
Therefore, an account with $1,200 would earn $72 in interest in one year at a 6% annual interest rate.