Question

If the interest rate of my saving account was 0.06% then how much interest would I earn if I had 1,000,000 dollars in my savings account?

Answer 1

Answer:

$60,000

Explanation:

The interest rate is presented as a percentage per year. In calculating simple interest, the expressed percentage is realized if the principal is held for a full year in the savings account.

the formula for simple interest as a follow

I= P x R x T

where I= interest, P= principal, T is time.

In this case, interest for one year will be

I =$1,000,000 x 0.06  x 1

I =$60,000

One year's interest is $60,000