Chloe deposits $2,000 in a money market account. The bank offers a simple interest rate of 1.2%. How much interest will she earn in 10 years? (Simple interest formula:
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I=prt )
I=prt
Where:
I = interest
p = principal amount (amount deposited)
r = interest rate
t = time in years
Given:
p = $2,000
r = 1.2% = 0.012 (in decimal form)
t = 10 years
Plugging in the values to the formula:
I = (2,000)(0.012)(10)
I = $240
Therefore, Chloe will earn $240 in interest in 10 years.