If you deposit $1,202.50 into an account paying 6% per year simple interest, how much interest will you have earned in 2 years?
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A. B. C. D. E.Explanation
Since this is a simple interest question, the formula is I=PRT, with T here being 2, since the timeframe is 2 years. On the BAII Plus, press 1202.50 x 0.06 x 2 = to see the answer. On the HP12C, press 1202.50 ENTER 0.06 x 2 x to see the answer. Since the question asks for the amount of interest earned, the original deposit should not be added to this value.