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John deposited $950 into a savings certificate that earned 3.5% interest per year. How much interest is that? Set

up a mathematical model and then solve the problem.

please show me step by step.

User R Milushev
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1 Answer

5 votes

Answer: $99.75

Explanation:

To calculate the interest earned on the savings certificate, you can use the formula for simple interest:

\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]

In this case:

- Principal (P) is $950.

- Rate (R) is 3.5% per year, which needs to be converted to a decimal by dividing by 100. So, R = 0.035.

- Time (T) represents the number of years the money is deposited. If you want to calculate the interest earned in a specific number of years, you would substitute that value for T.

Now, let's calculate the interest for one year:

\[ \text{Interest} = 950 \times 0.035 \times 1 \]

Calculate this:

\[ \text{Interest} = 950 \times 0.035 = 33.25 \]

So, the interest earned in one year is $33.25.

If you want to calculate the interest for a different number of years, you can replace the "1" in the formula with the desired number of years. For example, if you want to calculate the interest earned in 3 years:

\[ \text{Interest} = 950 \times 0.035 \times 3 = 99.75 \]

So, the interest earned in 3 years would be $99.75.

User Iamnat
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