Andrea deposited $300 in a savings account that pays 3% simple annual interest. How much interest will Andrea earn at the end of 3 years?
I = PRT
I = 300 * 0.03 * 3
I = ?
60$
To calculate the interest earned on a savings account, we can use the formula:
Interest = Principal x Rate x Time
Given:
Principal (P) = $300
Rate (R) = 3% or 0.03 (expressed as a decimal)
Time (T) = 3 years
Substituting the values into the formula:
Interest = $300 x 0.03 x 3
Calculating the interest:
Interest = $9 x 3
Interest = $27
Therefore, Andrea will earn $27 in interest at the end of 3 years.
To calculate the interest earned on Andrea's savings account, we need to use the formula for simple interest:
Simple Interest = Principal x Rate x Time
In this case, the principal is $300, the rate is 3% (or 0.03 in decimal form), and the time is 3 years. Plugging these values into the formula, we get:
Simple Interest = $300 x 0.03 x 3
Simplifying this equation, we have:
Simple Interest = $9
Therefore, Andrea will earn $9 in interest at the end of the 3 years.