Question

Find the amount of simple interest earned for depositing the given principle in an account.

$7200

7%

1 year

Simple interest:

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$7200\\ r=rate\to 7\%\to (7)/(100)\dotfill &0.07\\ t=years\dotfill &1 \end{cases} \\\\\\ I = (7200)(0.07)(1) \implies I = 504`