Question

Jane deposited $2,000 in high savings bank account that earned simple interest at an interest rate of 4%. how much interest was earned in three years?

Answer 1

To calculate the interest earned in a simple interest bank account, multiply the principal by the interest rate and the time. In this case, Jane earned $240 in interest over three years.

Step-by-step explanation:

To calculate the interest earned in a simple interest bank account, we use the formula:

Interest = Principal * Rate * Time

In this case, Jane deposited $2,000 in the bank account at an interest rate of 4% for three years. Plugging in the values into the formula, we get:

Interest = $2,000 * 0.04 * 3 = $240

Therefore, Jane earned $240 in interest over the three-year period.