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Hannah has $1,200 in her savings account. If the bank pays 3% interest per year on savings, how much Iinterest does she earn in one year?

Hannah has $1,200 in her savings account. If the bank pays 3% interest per year on-example-1

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Basically, we need to use the formula provided:


I=PRT

Where:

P = Principal (starting) = $1200

Rate = 3% = 0.03

Time = 1


\begin{gathered} I=1200*0.03*1 \\ I=36 \end{gathered}

Hannah earns $36 in interest after 1 year

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