Question

What is the simple interest earned on an investment of $12,625 in mutual funds for 12 years at a rate of 4%

Answer 1

Interest earned= $6,060

Explanation:

Giving the following formula:

Principal (P)= $12,625

Interest (r)= 4%= 0.04

Period of time (t)= 12 years

To calculate the interest earned after twelve years, we need to use the following formula:

I= P*r*t

I= (12,625*0.04*12)

I= $6,060

Interest earned= $6,060