Finding Simple Interest

The video tutorial explains how to calculate simple interest using the formula: Interest equals principal times rate times time. It presents a problem where Paloma deposits $750 in a savings account with a 2% annual interest rate. The tutorial guides viewers through calculating the interest earned over one year and determining the total amount in the account. The solution involves converting the interest rate to a decimal, multiplying by the principal and time, and adding the interest to the initial deposit to find the total amount.

What is the formula for calculating simple interest?

How much money did Paloma initially deposit into her savings account?

What is the interest rate that Paloma earns on her savings account?

Explain how to convert the interest rate from a percentage to a decimal.

After one year, what is the total amount of money in Paloma's account?