Using the simple interest formula I=prt , calculate the interest earned on $150 after one year at a 6% return rate.(1 point)

Question

Responses

$90.00
$90.00

$0.09
$0.09

$9.00
$9.00

$4.00
$4.00

Answer 1

To calculate the interest earned using the simple interest formula \( I = prt \):

• \( p \) = principal amount (initial investment) = $150
• \( r \) = rate of interest = 6% = 0.06
• \( t \) = time (in years) = 1 year

Now, plug the values into the formula:

\[ I = 150 \times 0.06 \times 1 \]

Calculating this gives:

\[ I = 150 \times 0.06 = 9.00 \]

Therefore, the interest earned on $150 after one year at a 6% return rate is $9.00.