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To calculate the interest on a deposit, you can use the formula:
Interest = Principal * Rate * Time
Where:
- Principal is the initial amount of money deposited
- Rate is the annual interest rate (expressed as a decimal)
- Time is the number of years the money is deposited for
For example, if you have $1000 deposited in a savings account with an annual interest rate of 5% for 2 years, the interest earned would be calculated as:
Interest = $1000 * 0.05 * 2 = $100
So, in this case, the interest earned on the deposit would be $100.
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