how much interest

Question

At an interest rate of 6%, how much interest would $12,000 earn over 2 years?

Answer 1

Time (T) = 2yrs

Rate of Interest (R) = 6%

Principal (P) = $12,000

Formula for the Interest is

I  =  (P X T X R ) / 100 --------------> (1)

Substitute T = 2, R = 6 and P = 12000 in Eq (1)

I  =  (12000 X 2 X 6 ) / 100

I  =  120 X 12

I  =  $1440

Answer :

The Interest is $1440.