Question

Jonathan puts $400 in a bank account. Each year the account earns 6% simple interest. How much interest will be earned in 5 years?

Answer 1

Answer:

Principal = $400

Rate of Interest = 6% p.a.

Time = 5 years

Therefore, Interest =

$\frac{prt}{100}$

$= \frac{400 \times 6 \times 5}{100}$

= $ 120