Question

9. Sarah saves $200 in her bank account for 3 years at a 5% interest rate. How much interest does she earn?​

Answer 1

$30

Explanation:

Assuming this is an annual compound with a simple interest rate. the formula we can use is A=P(rt).

P=200

r=0.05

t=3

0.05*3=0.15

200*0.15=30

She earned $30

Answer 2

The amount of interest she earns is: $30

Explanation:

Given

• Principle P = $200

• Time period t = 3 years

• Interest rate r = 5% or 5/100 = 0.05

To determine

Interst I = ?

Using the equation to determine the interest amount

`I = Prt`

substitute P = 200, r = 0.05 and r = 3

`I\:=\:200\:* \:0.05\:* \:3`

`I = 30` $

Therefore, the amount of interest she earns is: $30