Answer:
The interest earned in a year was $1080.
Explanation:
Since the money was invested at a simple interest rate, then the amount earned in one year is given by the following formula:
M = C*r*t
Where M is the amount earned, C is the amount invested, r is the rate of interest and t is the time elapsed. Applying the data from the problem, we have?
M = 20000*(5.4/100)*1
M = 20000*0.054
M = 1080
The interest earned in a year was $1080.