Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent if necessary.
-Rea placed $\$ 12,000$ in a one year-CD paying simple interest of $4.5 \%$ for one year. How much interest will Rea earn in one year?
A) $\$ 12,540.00$
B) $\$ 5400.00$
C) $\$ 17,400.00$
D) $\$ 540.00$

Question

Quizplus · Accepted Answer

The interest earned can be calculated using the formula $I = PRT$, where $I$ is the interest, $P$ is the principal amount (\$12,000), $R$ is the rate (4.5% or 0.045), and $T$ is the time in years (1). Thus, $I = 12000 \times 0.045 \times 1 = \$540$.

Solve the Problem $12,000\$ 12,000$12,000 In a One Year-CD Paying Simple Interest Of

Solve the Problem $\$ 12,000$ In a One Year-CD Paying Simple Interest Of