Question

12.

A $20,000 investment earned a simple interest rate of 5.4%. How much interest was earned in one year?

Answer 1

Answer:1,080

Explanation:

20,000 x .54 equals $1,080

Answer 2

18,920.00

Explanation:

discount = x

original price = $20,000

discount% = 5.4%

x/20,000 = 5.4/100

x · 100 = 5.4 · 20,000

100x = 108,000

100x/100 = 108,000/100

x = $ 1,080.00

Sale price = original $ - discount $ = final answer

$20,000 - $1,080 = $18,920.00