Question

You can calculate the interest on a savings account by using this formula: Interest = Principal × Rate × Time If Mary deposits $275 in principal at an interest rate of 3.2 percent, how much interest will she earn in one year? A. $880 B. $18.80 C. $8.80 D. $88

Answer 1

I= P x R x T
I= 275 x 3.2% x 1
I=275 x .032
I=$8.8

C. $8.80

Hope this helps :)

Answer 2

Option C is correct

$8.80

Explanation:

Given the formula for interest:

`\text{Interest} = \text{Principal} * \text{Rate} * \text{Time}`

As per the statement:

If Mary deposits $275 in principal at an interest rate of 3.2 percent.

⇒Principal = $275 and Rate = 3.2% = 0.032

We have to find interest will she earn in one year.

⇒Time = 1 year

Substitute these in the formula we have';

`\text{Interest} = 275 * 0.032 * 1 = \$ 8.80`

Therefore, $8.80 interest will she earn in one year