How much interest would be earned on $150 after one year at a 6% simple interest rate?

To calculate the interest earned on an amount using simple interest, you can use the formula:

Interest = Principal × Rate × Time

In this scenario:

• The principal amount is $150.

• The interest rate is 6%, which can be expressed as a decimal, so it becomes 0.06.

• The time is one year.

Plugging the values into the formula gives:

Interest = $150 × 0.06 × 1 = $9.00

This calculation shows that the interest earned after one year on $150 at a 6% simple interest rate is $9.00. The correct answer reflects the proper application of the simple interest formula, making it clear how much money would be earned in interest over that year.