jonathan puts $400 in a bank account. each year the account earns 6% simple interest. how much interest will…

jonathan puts $400 in a bank account. each year the account earns 6% simple interest. how much interest will be earned in 5 years? a $1,200 b $12 c $12,000 d $120

jonathan puts $400 in a bank account. each year the account earns 6% simple interest. how much interest will be earned in 5 years? a $1,200 b $12 c $12,000 d $120

Answer

Explanation:

Step1: Recall simple interest formula

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

Step2: Convert rate to decimal

The annual interest rate is 6%, so in decimal form, ( r = \frac{6}{100} = 0.06 ).

Step3: Identify values of P and t

The principal amount ( P = $400 ) and the time ( t = 5 ) years.

Step4: Calculate interest

Substitute the values into the formula: ( I = 400 \times 0.06 \times 5 ). First, calculate ( 400 \times 0.06 = 24 ). Then, calculate ( 24 \times 5 = 120 ).

Answer:

D. $120