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Jenny has $1200 in her savings account. If the bank pays 3% interest per year on savings, how much interest does she earn in one year?

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Answer:

To find out how much interest Jenny earns in one year, we can use the formula:

interest = principal x rate x time

where:

the principal is the amount of money in the savings account

rate is the interest rate per year, expressed as a decimal

time is the length of time the money is in the account, in years

In this case, Jenny's principal is $1200, the rate is 3% or 0.03 as a decimal, and the time is 1 year. Plugging these values into the formula, we get:

interest = 1200 x 0.03 x 1

interest = $36

Therefore, Jenny earns $36 in interest in one year.

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