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If a sum of $1200 is invested at an annual simple interest rate of 5% for 2 years, what is the total interest earned?

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If a sum of $1200 is invested at an annual simple interest rate of 5% for 2 years, what is the total interest earned? Answer: $120

Interest = (Principal * Rate * Time) / 100 = (1200 * 5 * 2) / 100 = $120.

Question context

This question is part of 📏 Arithmetic Aptitude within the broader 🧠 Aptitude Mastery subject and appears in the CTS – Candidate Testing Service preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.