Answer:
$60
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.
[tex]I = Prt[/tex]
P = initial balance
r = annual interest rate
t = time
First, change 1.2% into its decimal form:
1.2% -> [tex]\frac{1.2}{100}[/tex] -> 0.012
Next, plug the values into the equation:
[tex]I=1000(0.012)(5)[/tex]
[tex]I=60[/tex]
The interest earned is $60.
