Question

A savings account earns 5% simple interest per year. The principal is $1200. What is the balance after 4 years?

Answer 1

The formula of the Simple Interest is:
I=PRT
P for Principle Amount     ($1200)
R for Rate                        (5%=$\frac{5}{100}$ = 0.05)
T for Time in years          (4 years)
I = 1200 × 0.05 × 4
  = $240

Add the interest to the principle amount to check the balance
$1200 + $240 = $1440

Answer 2

$240 i rember doing interest right around january