**Pat deposits $600 in a savings account at a simple interest rate 6% per year for 5 years. How much money will Pat have earned in interest at the end of 5 years?**

$360

$180

$95

$36

*Correct Answer : B*

In the simple interest, we utilize the following formula to find the simple interest after a period of time in years.

I=P*r*t

I is the interest

P=Principal or initial deposit

r=rate

t=time in years

From the given problem, P=$600, r=6%=6/100=0.06, t=5 years. Then

I=$600*0.06*5=$180

After 5 years, Pat will earn an interest of $180.

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