Asavings account earns 5% simple interest per year. the principal is $1200. what is the balance after 4 years?
how do i solve this?

The formula of the Simple Interest is:
I=PRT
P for Principle Amount     ($1200)
R for Rate                        (5%= = 0.05)
T for Time in years          (4 years)
I = 1200 × 0.05 × 4
  = $240

Add the interest to the principle amount to check the balance
$1200 + $240 = $1440

Ibelieve the answer should be b