Question

Betty has $1,000 in her savings account. The interest rate is 2.5%. How much interest will Betty earn when her money has been in bank for 3 years?

Answer 1

$1,075

Explanation:

Use the formula I=PRT where I= interest, P=principle or starting amount, R=interest rate, T=time

1000*0.025*3=75

Add 75 to 1,000, 1,000+75=1,075