Final answer:
The interest earned on a principal of $646 invested at an interest rate of 5% for two years is $64.60.
Step-by-step explanation:
To calculate the amount of interest earned on a principal of $646 invested at an interest rate of 5% for two years, we can use the formula for simple interest:
Interest = Principal × Rate × Time
Plugging in the values, we get:
Interest = $646 × 0.05 × 2 = $64.60
Therefore, the interest earned on the principal is $64.60.