Question

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

- \( p \) is the principal amount (initial investment), which is $150.
- \( r \) is the rate of interest (expressed as a decimal), which is 6% or 0.06.
- \( t \) is the time the money is invested or borrowed for in years, which is 1 year.

Now, plug in the values into the formula:

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

Calculating:

\[
I = 150 \times 0.06 = 9
\]

Thus, the interest earned after one year is **$9.00**.

The correct response is:
**$9.00**