$1200 is invested at 6%p.a. for 42 months

how much interest is earned after 2 years?

interest after 2 years

= 1200(1.06)^2 - 1200
= ...

assuming compound interest

To calculate the interest earned after 2 years, we first need to find the total amount after 2 years.

The formula to find the total amount is:
Total Amount = Principal + (Principal * Interest Rate)

Given:
Principal (P) = $1200
Interest Rate (R) = 6% per year

First, we need to find the interest rate for 2 years. Since the interest rate is per year, we multiply the rate by the number of years:

Interest Rate for 2 years = 6% * 2 = 12%

Now, we can calculate the total amount after 2 years:

Total Amount = $1200 + ($1200 * 12%)
Total Amount = $1200 + ($1200 * 0.12)
Total Amount = $1200 + $144
Total Amount = $1344

To find the interest earned, we subtract the principal from the total amount:

Interest Earned = Total Amount - Principal
Interest Earned = $1344 - $1200
Interest Earned = $144

Therefore, the interest earned after 2 years is $144.

To calculate the interest earned after 2 years, we first need to convert the time period from years to months. Since there are 12 months in a year, 2 years is equal to 24 months.

Next, we can use the formula for calculating simple interest:

Interest = Principal x Rate x Time

In this case, the principal (P) is $1200, the rate (R) is 6% (or 0.06 as a decimal), and the time (T) is 24 months.

Plugging these values into the formula, we have:

Interest = $1200 x 0.06 x 24

Simplifying the calculation, we get:

Interest = $1728

Therefore, after 2 years (or 24 months), the interest earned would be $1728.