Question

Maria has a savings account that earns 5% simple interest each year. The account has $2,300. If Maria does not add or take out any money, how much interest will she earn in 3 years?

Answer 1

To calculate the interest earned by Maria in 3 years, we can use the simple interest formula:

Interest = Principal * Rate * Time

Given:

Principal (P) = $2,300

Rate (R) = 5% = 0.05 (as a decimal)

Time (T) = 3 years

Substituting these values into the formula, we have:

Interest = $2,300 * 0.05 * 3

Calculating the result:

Interest = $2,300 * 0.05 * 3

= $345

Therefore, Maria will earn $345 in interest over 3 years.