Question

Jen deposited $750 in her savings account. The account earns 2% simple interest per year. She has the money in her account for 24 months. How much money did she earn in simple interest?

Answer 1

Answer: $30

Explanation:

She has the money in her account for 24 months which is 2 years.

Simple interest is formula is:

A = P (1 + rate * no. of periods)

= 750 * ( 1 + 2% * 2)

= $780

She started with $750 and now has $780.

Earnings in simple interest :

= 780 - 750

= $30