Question

If paul puts 300 dollars in a saving account that earns 3% interest how much interest will he earn after 2 years?​

Answer 1

Answer:

$\boxed{18 \: dollars}$

Step-by-step explanation:

Principal ( P ) = $ 300

Rate ( R ) = 3%

Time ( T ) = 2 years

Now, let's find the simple Interest:

I = $\mathsf {\frac{PTR}{100} }$

$\mathsf{ = \frac{300 \times 2 \times 3}{100} }$

$\mathsf{ = \frac{1800}{100} }$

$\mathsf{ = 18}$

Extra information:

Simple Interest

In our daily life when we borrow a sum of money either from a moneylender or from any financial company, we have to pay the money back by adding with extra sum of money. This borrowed money is called principal. The extra money to be paid for the borrowing money is called interest , which is paid after certain duration in certain rate. At last, the borrowed money should be paid back along with interest which is called amount.

Interest is based on three factors : Principal ( P ) , Rate of interest ( R ) and Time ( T ). While computing the interest, the rate must be in percent and time in years.

$\mathsf{ \: simple \: interest \: = \frac{PTR}{100} }$

On simplifying

$\mathsf{p = \frac{I \times 100}{T \times R} }$

$\mathsf{t = \frac{I \times 100}{P \times R} }$

$\mathsf{r = \frac{I \times 100}{P \times T}}$

And from the definition,

Amount ( A ) = Principal ( P ) + Interest ( I )

Principal ( P ) = Amount ( A ) - Interest ( I )

Interest ( I ) = Amount ( A ) - Principal ( P )

Hope I helped!

Best regards!

Answer 2

Answer:$18

Step-by-step explanation:3% of $300 is $9.$9 is the interest of 1 year so the interest of 2 years is 2 multiplied by 9 which is $18.