Question
How much interest is earned on \( \$ 2,700 \) in one year if it is invested at \( 3 \% \) ? \( \$ 81.00 \) \( \$ 810.00 \) \( \$ 8.10 \)
Ask by Lee Bolton. in the United States
Feb 27,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The interest earned is \$81.00.
Solution
To calculate the interest earned, use the formula for simple interest:
Interest = Principal × Rate
Here, the principal is $2,700 and the rate is 3% (or 0.03 in decimal form).
Interest = 2,700 × 0.03 = 81
So, the interest earned in one year is $81.00.
The correct answer is: $81.00.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Bonus Knowledge
To find the interest earned on \( \$ 2,700 \) in one year at a \( 3\% \) interest rate, you can use the formula: Interest = Principal × Rate. Here, it will be \( 2700 \times 0.03 = 81 \). So, the interest earned is \( \$ 81.00 \). Isn't it cool how investing even a small amount can grow your money? Now imagine if you kept it invested for several years; compound interest could really boost your returns! So, keep that money working for you!
