$500 for 1 year at 12% per year
I = PRT
I = 500 * 0.12 * 1
I = ?
To calculate the interest earned on $500 for 1 year at a 12% annual interest rate, you can use the simple interest formula:
Interest = Principal * Rate * Time
In this case:
Principal = $500
Rate = 12% (converted to a decimal, which is 0.12)
Time = 1 year
Plugging in these values into the formula, we get:
Interest = $500 * 0.12 * 1
Multiplying, we get:
Interest = $60
So the interest earned on $500 for 1 year at 12% per year is $60.