An Listen \( \$ 1200 \) at \( 2.8 \% \) for 30 months The interest earned is \( \$ \square \).

To calculate the interest earned on \( \$1200 \) at a rate of \( 2.8\% \) for \( 30 \) months, you can use the formula for simple interest: \[ \text{Interest} = P \times r \times t \] Where \( P \) is the principal amount (\$1200), \( r \) is the rate (as a decimal), and \( t \) is the time in years. First, convert the rate to decimal by dividing by \( 100 \) (\( 2.8/100 = 0.028 \)). Since \( 30 \) months is \( 2.5 \) years, plug in the values: \[ \text{Interest} = 1200 \times 0.028 \times 2.5 \approx \$84 \] So, the interest earned is \( \$84 \). To get a firmer grasp on the topic of interest calculations, it’s useful to explore the historical roots of finance! The concept of charging interest dates back to ancient Mesopotamia, where loan records were kept on clay tablets around 3000 B.C. It originated when farmers borrowed seeds, with repayment in kind—the more you grew, the more you could return, just like today's interest! If you're keen to understand more about financial literacy, check out “The Simple Path to Wealth” by JL Collins. It’s a delightful read that demystifies investing and saving for the future while making it fun and approachable! You'll learn about the magic of compound interest and how it can work wonders for your savings over time.