Question

The following information is known about a savings account. Time = 6 years Interest rate = 1.9% Principal = $850 What amount of simple interest will be earned?

Answer 1

I = PRT
T = 6
P = 850
I = 1.9% = 0.019

I = (850)(0.019)(6) = 96.90 <==

Answer 2

Answer:

The amount of simple interest would be $ 96.90

Step-by-step explanation:

Given,

Principal amount, P = $ 850,

Time, t = 6 years,

Annual simple interest rate, r = 1.9%,

Thus, the amount of simple interest,

$I = \frac{P\times r\times t}{100}$

$=\frac{850\times 1.9\times 6}{100}$

$=\frac{9690}{100}$

$=\ 96.90$