Using the simple interest formula I=prt

Question

, 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 \( I = prt \):

• \( p \) (principal) = $150
• \( r \) (rate) = 6% = 0.06 (as a decimal)
• \( t \) (time) = 1 year

Now, plug the values into the formula:

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

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

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