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Cara makes an initial deposit of $280 in a savings account to pays 3.5%. What is the interest earned after 1 year?

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Final answer:

Cara will earn a simple interest of $9.80 after one year on her initial deposit of $280 in a savings account that has an annual interest rate of 3.5%.

Step-by-step explanation:

Calculating Simple Interest

Cara's initial deposit of $280 in a savings account that pays 3.5% interest annually will earn interest over one year. To calculate the simple interest earned after one year, you can use the formula I = PRT, where I is the interest, P is the principal amount (the initial deposit), R is the annual interest rate (in decimal form), and T is the time in years. Substituting the values, I = $280 × 0.035 × 1.

Therefore, the simple interest Cara will have earned after one year is:

  • $280 × 0.035 × 1 = $9.80

So, Cara will earn $9.80 in interest after one year.

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