How much interest is earned on $2,700 in one year if it is invested at 3%?

Solution:

The formula used to find the interest is

I = Prt

Where P is the principal

r is the rate of interest 3%

t is the time

It is given that

P = $2,700

r = 3% = 0.03

t = 1 year

Substituting the values

I = 2,700 × 0.03 × 1

By further calculation

I = 81

Therefore, the interest earned is $81.

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How much interest is earned on $2,700 in one year if it is invested at 3%?

Summary:

The interest earned on $2,700 in one year if it is invested at 3% is $81.