SOLUTION: Deposit $120 in a savings account that pays an annual interest rate of 2.5%. How much simple interest would you earn in 2 years? I=Prt I=(120)(0.025)(2) I=6 2 years interest

Algebra ->  Finance -> SOLUTION: Deposit $120 in a savings account that pays an annual interest rate of 2.5%. How much simple interest would you earn in 2 years? I=Prt I=(120)(0.025)(2) I=6 2 years interest      Log On


   

Question 333280: Deposit $120 in a savings account that pays an annual interest rate of 2.5%. How much simple interest would you earn in 2 years?
I=Prt
I=(120)(0.025)(2)
I=6
2 years interest on $120 at a rate of 2.5%.
Is this correct?
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
I = P*r*t
P=120
r= 2.5% = 0.025
t=2
..
I=120*0.025*2
I=$6
You were right