Compute the simple interest earned on a 1 year $200 deposit that earns 6% per year

Dear your question is under process and shall be available to you in next few minutes.

Using the compound interest formula, we have thatP=$200, r=6/100=0.06, n=1, t=1

A is deposit value in future

A = P (1+ r/n)^nt

A = 200 (1+0.06/1)^(1)(1)

A = 200 (1.06)

A = $212

Interest = Compounded amount - principle amount

= 212 - 200

= $12

Secure Information

Content will be erased after question is completed.

Enter the email address associated with your account, and we will email you a link to reset your password.

Forgot your password?

Sign Up