Question

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?

Answer 1

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.