hloe 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:
I=prt
To find the interest earned, we need to use the simple interest formula:
I = prt
Where:
I = Interest earned
p = Principal (initial deposit) = $2,000
r = Interest rate = 1.2% = 0.012 (decimal)
t = Time (in years) = 10
Plugging in these values into the formula, we have:
I = 2000 * 0.012 * 10
I = $<<2000*0.012*10=240>>240
Therefore, she will earn $240 in interest over 10 years.