Megan deposited $3,500 in a savings account for 1 year at a rate of 1.5% per year. How much interest will she earn?
To calculate the interest earned, we can multiply the initial deposit by the interest rate.
Interest = Initial deposit x Interest rate
Interest = $3,500 x 1.5%
Interest = $3,500 x 0.015
Interest = $<<3500*0.015=52.5>>52.5
Megan will earn $52.50 in interest.
To calculate the interest earned, we can use the formula:
Interest = Principal * Rate * Time
Given:
Principal (P) = $3,500
Rate (R) = 1.5% (convert to decimal by dividing by 100: 1.5/100 = 0.015)
Time (T) = 1 year
Substituting the values into the formula, we have:
Interest = $3,500 * 0.015 * 1
Calculating this, we find that:
Interest = $52.50
Therefore, Megan will earn $52.50 in interest.