Question

Krystal invested $12,000 in an account that pays 5% annual simple interest. Krystal will not make any additional deposits or withdrawals. How much interest will Krystal earn on her investment at the end of two years?

Answer 1

To calculate the interest earned on Krystal's investment, we multiply the principal, rate, and time. Krystal will earn $1,200 in interest on her $12,000 investment at the end of two years.

Step-by-step explanation:

To calculate the interest earned on Krystal's investment, we use the formula:

Interest = Principal x Rate x Time

In this case, the principal is $12,000, the rate is 5% (or 0.05), and the time is 2 years. Plugging these values into the formula:

Interest = $12,000 x 0.05 x 2 = $1,200

Therefore, Krystal will earn $1,200 in interest on her investment at the end of two years.