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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?

Verified Answer :

texaschic101

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

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

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,

\(I = \frac{P\times r\times t}{100}\)

\(=\frac{850\times 1.9\times 6}{100}\)

\(=\frac{9690}{100}\)

\(=\$ 96.90\)

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