Marsha deposited $10,000 into a savings account 3 years ago. The simple interest rate is 3% how much money did Marsha earn in interest
10000 * 0.03 * 3 = _____
To calculate the interest earned on a savings account, we can use the formula:
Interest = Principal * Rate * Time
Where:
- Principal is the initial amount deposited (in this case, $10,000)
- Rate is the interest rate (in this case, 3% or 0.03)
- Time is the number of years (in this case, 3 years)
Using the formula and substituting the values, we have:
Interest = $10,000 * 0.03 * 3
= $300 * 3
= $900
Marsha earned $900 in interest on her savings account.
To calculate the amount of money Marsha earned in interest, we need to use the formula for simple interest, which is:
Interest = Principal × Rate × Time
In this case:
Principal = $10,000 (the amount Marsha deposited)
Rate = 3% (expressed as a decimal, 0.03)
Time = 3 years
Plugging these values into the formula:
Interest = $10,000 × 0.03 × 3
Multiplying those numbers:
Interest = $900
Therefore, Marsha earned $900 in interest on her $10,000 deposit over a period of 3 years.