Question

Jenny has $1,200 in her savings account. If the bank pays 3% interest per year on savings, how much interest does she earn in one year? A.$36 B.$360 C.$3.60 D.$3600

Answer 1

Given:

Principal value = $1200

Rate of interest = 3% per year

To find:

The interest earned by Jenny in one year.

Solution:

Formula of interest:

$I=\dfrac{P\times r\times t}{100}$

Where, P is principal, r is rate of interest and t is time.

We have, P = 1200, r = 3, t=1. Putting these values, we get

$I=\dfrac{1200\times 3\times 1}{100}$

$I=\dfrac{3600}{100}$

$I=36$

The interest earned by Jenny in one year is $36.

Therefore, the correct option is A.