If Mary deposits 275 in principal at an interest rate of 3.2 percent how much interest will she earn in one year?

Before she chooses a bank and deposits her money, Mary should shop around first.

There are different kinds of interest.

At 3.2% . . .

If it's simple interest, her money will earn $ 8.80 .

If it's compounded quarterly, it earns $ 8.91 in one year.

If it's compounded monthly, it earns $ 8.93 .

If it's compounded daily, it earns $ 8.94 .

Also, by the way, notice that Mary doesn't earn the interest. Her invested money does.