Erin deposited $1,800 in a new account that earns 2% simple interest. After 3 years, how much interest will she have earned?
1800 * 0.02 * 3
To find out how much interest Erin will have earned after 3 years, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Where:
Principal = $1,800 (the amount deposited)
Rate = 2% (expressed as a decimal, so 0.02)
Time = 3 years
Substituting the given values into the formula:
Interest = 1800 * 0.02 * 3
Calculating this:
Interest = $108
Therefore, Erin will have earned $108 in interest after 3 years.
To calculate the amount of interest Erin will have earned, we can use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, the principal (or initial deposit) is $1,800, the rate is 2% (which can be expressed as 0.02 in decimal form), and the time is 3 years. Plugging these values into the formula:
Interest = $1,800 × 0.02 × 3
Interest = $108
Therefore, Erin will have earned $108 in interest after 3 years.