Question

1. money in a savings account earns 6% after a year. if there is $200 in the account, how much interest would be made after a year?

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is \( I = P \times r \), where \( I \) is the interest, \( P \) is the principal amount, and \( r \) is the annual interest rate (in decimal form).

Step2: Convert percentage to decimal

The interest rate is 6%, so we convert it to a decimal by dividing by 100: \( r=\frac{6}{100} = 0.06 \).

Step3: Identify principal amount

The principal amount \( P \) is $200.

Step4: Calculate interest

Substitute \( P = 200 \) and \( r = 0.06 \) into the formula: \( I=200\times0.06 \).
\( I = 12 \).

Answer:

The interest made after a year is $12.