Chloe deposits $2,000 in a money market. The bank offers a simple interest rate of 1.2%. How much interest will she earn in 10 years?

Answer 1

The interest earned can be found by multiplying the principal amount ($2,000) by the interest rate (1.2%) and the time period (10 years).

Interest = Principal × Rate × Time
Interest = $2,000 × 1.2% × 10
Interest = $2,000 × 0.012 × 10
Interest = $240

She will earn $240 in interest in 10 years.