Juan deposited $200 in a savings account earning 3% interest over 2 years. What was the total amount of interest earned after 2 years?

A.
$12

B.
$24

C.
$120

D.
$240

Question

Juan deposited $200 in a savings account earning 3% interest over 2 years. What was the total amount of interest earned after 2 years? 	
	
 
A.
	$12
	
 
B.
	$24
	
 
C.
	$120
	
 
D.
	$240

mathstudent55 · Answer

I assume the rate is 3% annual simple interest.
3% of $200 =
3% * 200 =
0.03 * 200 =
6
The account earned $6 interest in one year.
How much did it earn in two years?