Question

Dawnie deposited $350 in a savings account earning 2% interest over 3 years.
What was the total amount of interest earned at the end of 3 years?

A.
$420

B.
$210

C.
$42

D.
$21

Answer 1

Solutions 

Dawnie deposited $350 in a savings account earning 2% interest over 3 years.

To solve the problem we have to use the formula 

I = Principal × Rate × Time (year). 

⇒ Given 

$350 in a savings account  

2% interest over 3 years

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Let principal amount = $350.00

Let interest rate, 2% per year, or in decimal form, 2/100=0.02. 

Let time involved, 3 year(s) time periods. 

Calculations 

To get the interest rate you have to multiply 

350 × 0.02 × 3
                                   
The interest is: $21.00 

Answer = (D) 

Answer 2

So to find the interest, the formula is I= Principal × Rate × Time (year)
Change 2% to 0.02
Plug the numbers into the variable, $350 × 0.02 × 3 = $21, so the answer was D.$21.