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What is the simple interest of a note that has a face value of $12,000, a rate of 8%, and a term of 1 year?

Answer :

Solution:

Given:

[tex]\begin{gathered} P=\text{ \$}12,000 \\ R=8\text{ \%} \\ T=1year \end{gathered}[/tex]

Using the simple interest formula,

[tex]\begin{gathered} I=\frac{PTR}{100} \\ I=\frac{12000\times1\times8}{100} \\ I=\text{ \$}960 \end{gathered}[/tex]

Therefore, the simple interest is $960.

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