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2 years ago

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Item 6 A savings account earns 5% simple interest per year. The principal is $1200. What is the balance after 4 years?

1 answer:

lions [1.4K]2 years ago

4 0

The formula for simple interest is

I=PRT

here P=$1200

R=5% or 0.05

T=4 years

plugging in the formula we get

I=1200*0.05*4=240

Balance after four years =1200+240=$1440

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