Rachel has been given $1000 to put into a savings account. She earns 2% simple interest every month. Rachel hopes to buy a car in two years. Help Rachel determine whether she will have enough money if the car will cost $1500. Homework Help ✎
Find the amount of interest Rachel makes. Remember, her interest is added on each month. Consider how many months there are in 2 years.
Using I = Prt: 1000 (0.02) 24
In 2 years, Rachel will have gained 480 dollars of interest.