Question

9. Find the interest earned in an account with $600 invested at 4.5% annual simple interest for 2

years.
$540:00
$5,400.00
O$54.00
O$13.50

Answer 1

$54.00

Explanation:

Simple Interest Formula

I = Prt

where:

• I = Interest earned.
• P = Principal invested.
• r = Annual interest rate (in decimal form).
• t = Time (in years).

Given values:

• P = $600
• r = 4.5% = 0.045
• t = 2 years

Substitute the given values into the formula and solve for I:

`\implies \sf I=600 * 0.045 * 2`

`\implies \sf I=27 * 2`

`\implies \sf I=54`

Therefore, the total interest earned was $54.00.