Question

Chloe deposits $2,000 in a money market account. The bank offers a simple interest rate of 1.2%. How much interest will she earn in 10 years

Answer 1

Answer:

$240.00

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 1.2%/100 = 0.012 per year,

then, solving our equation

I = 2000 × 0.012 × 10 = 240

I = $ 240.00

The simple interest accumulated

on a principal of $ 2,000.00

at a rate of 1.2% per year

for 10 years is $ 240.00.

Answer 2

Here, We have to find simple interest, It is abbreviated as S.I.

$\boxed{ \sf \: formula : si = \frac{p \times r \times t}{100} }$

Where,

• P is principle
• R is rate
• T is time

In our case,

• Principle is $2000
• Rate is 1.5%
• Time is 10 years

$\tt \: si = \frac{20 \cancel{00 }\times 1.5 \times 10}{1 \cancel{00} }$

$\tt \: si = 20 \times 1.5 \times 10$

$\tt \: si = 30 \times 10$

$\tt \: si = 300$

Thus, She will earn the interest of $300 after 10 years!~