Question

If the principle is $12,000 and the rate of interest is 6% (simple interest), what

is the total amount after one year?
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Answer 1

9514 1404 393

Answer:

$12,720

Explanation:

The amount is given by the formula ...

A = P(1 +rt)

where P is the principal, invested at rate r for t years.

A = $12,000(1 +0.06·1) = $12,720

The total amount after 1 year is $12,720.