Final answer:
Andrea will earn $27 in simple interest on her $300 deposit at a rate of 3% over 3 years by using the formula I = PRT, where I is the interest, P is the principal amount, R is the rate, and T is the time in years.
Step-by-step explanation:
The question is about calculating the simple interest Andrea will earn on her $300 deposit in a savings account that pays a 3% annual rate over 3 years. Simple interest is found using the formula I = PRT, where I stands for interest, P stands for principal amount (initial amount), R stands for rate of interest, and T stands for time in years.
In Andrea's case:
- Principal (P) = $300
- Rate (R) = 3% or 0.03 (as a decimal)
- Time (T) = 3 years
Now, plugging these values into the formula, we get:
I = $300 × 0.03 × 3
Calculating the product:
I = $27
Therefore, Andrea will earn $27 in interest at the end of 3 years.