The interest that a person would pay at the end of the first year is $720.
Interest is defined as the money payment over the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a set rate.
It differs from a fee paid by the borrower to the lender or a third party. This amount is charged for the use of lenders property and money.
Computation of Interest:
According to the given information,
Principal(P) = $12,000
Rate(r) = 6%
Time(t) = 1 year
Top compute the amount of interest, put the given values in the formula of Simple interest:
[tex]\text{Simple Interest(S.I.)} = P \times r \times t\\\\\text{S.I.} = \$12,000 \times 6\% \times 1\\\\\text{S.I.} = \$720[/tex]
Therefore, the interest to be in the first year is $720.
Learn more about the simple interest, refer to:
https://brainly.com/question/22621039
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