Question

A savings account earns 7% annual simple interest. The principal is $1,800. What is the interest

after 6 years? What is the balance?

Answer 1

The interest is $756.

The balance is $2,556.

Explanation:

I = Prt

I = $1,800 * 0.07 * 6

I = $756

The interest is $756.

$1800 + $756 = $2,556

The balance is $2,556.