Answer:
[tex]\$1,920[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=5*12=60\ months\\ P=\$1,200\\r=0.01[/tex]
substitute in the formula above
[tex]A=\$1,200(1+0.01*60)[/tex]
[tex]A=\$1,200(1.6)=\$1,920[/tex]
