Question

Juan deposited $200 in a savings account earning 3% interest over 2 years.

What was the total amount of interest earned at the end of 2 years?



A.
$240


B.
$24


C.
$120


D.
$12

Answer 1

3% = .03
200 × .03 = 6
6 × 2 = 12
Answer: D

Answer 2

Given:
Principal Deposit = $ 200
Interest Rate per annually = 3%
Term = 2 years

Formula:
I=PRT

I = $ 200 x 3% x 2
I = $ 200 x 0.03 x 2
I = $ 200 x 0.06
I = $ 12