a person invested 1,200.00 at 7% interest for 6 years. how much interest did he receive?
Interest = principle * rate * time
I = 1,200 * 0.07 * 6
I = ?
Note that this is simple interest.
at compound interest it would be
1200(1.07)^6 = .....
To calculate the amount of interest received, you can use the formula:
Interest = Principal × Rate × Time
Where:
- Principal is the initial amount invested
- Rate is the interest rate
- Time is the duration of the investment in years
In this case, the principal amount invested is $1,200.00, the interest rate is 7%, and the investment duration is 6 years.
Plugging these values into the formula:
Interest = $1,200.00 × 0.07 × 6
Now, let's calculate it:
Interest = $1,200.00 × 0.42
Interest = $504.00
Therefore, the person received an interest of $504.00.