Question

Chloe deposits $2,000 in a money market account. The bank offers a simple interest rate of 1.2%. How much interest will she earn in 10 years

Answer 1

$240.00

Explanation:

First, converting R percent to r a decimal

r = R/100 = 1.2%/100 = 0.012 per year,

then, solving our equation

I = 2000 × 0.012 × 10 = 240

I = $ 240.00

The simple interest accumulated

on a principal of $ 2,000.00

at a rate of 1.2% per year

for 10 years is $ 240.00.