Question

What is the interest earned on a principal of $250 at 3% interest for 9 years

Answer 1

Answer: $67.50

Explanation:

This question is asking for the amount of interest earned so let's write out the formula.

`I=Prt`

Where:

I is the amount of interest

P is the principal amount ($250)

r is the interest rate (3% or 0.03)

and t is the time (9 years)

Sub in our values into the equation and solve

`I=(250)(0.03)(9)\\I=(7.5)(9)\\I=67.50`