To calculate the interest earned on an investment of $2700 at an interest rate of 3% over one year, you can use the simple interest formula:
Interest = Principal × Rate × Time
In this case:
- Principal (P) = $2700
- Rate (R) = 3% (or 0.03 as a decimal)
- Time (T) = 1 year
Now, plug these values into the formula:
Interest = 2700 × 0.03 × 1
Calculating this gives:
Interest = 2700 × 0.03 = 81
Therefore, the interest earned on $2700 invested at a rate of 3% for one year is $81. This means that at the end of the year, your total amount, including the interest, would be $2700 + $81 = $2781.