Question

Taylor wants to figure out how much interest she will earn if she keeps $500 in her savings account for 2 years at a simple annual interest rate of 3%. She has already entered the principal and time into the I = Prt formula, but isn’t sure how to enter the interest rate. Fill it in for her.

Answer 1

Answer:30

Step-by-step explanation:

500*3*2/100=30

Answer 2

Answer: $30.

Step-by-step explanation:

Given : Taylor wants to figure out how much interest she will earn if she keeps $500 in her savings account for 2 years at a simple annual interest rate of 3%.

Initial amount : P= $500 , r= 3%= 0.03  and  t=2 years

Using formula to calculate interest :$I=Prt$, where P is initial mount ,r is rate of interest ( in decimal ) and t is time ( in years).

We have,  $I=500(0.03)(2)=30$

Hence, the interest she will earn = $30.