Answer:
$3960
Step-by-step explanation:
Given parameters:
Principal = $12,000
Simple interest = 8.25%
Time = 4yrs
Unknown:
Interest earned = ?
Solution:
To solve this problem, we have to use the simple interest formula shown below:
Simple interest = [tex]\frac{PRT}{100}[/tex]
P is the principal
R is the rate
T is the time
Now insert the parameters and solve;
Simple interest = [tex]\frac{12000 x 8.25 x 4}{100}[/tex] = $3960
