Question

Gisele put $800 into a savings account that earns 6.5 simple interest how much will she have after 2 years?

Answer 1

$904

Explanation:

We can simply use the simple interest formula here to solve this problem.

Simple Interest Formula:

`i=Prt`

Where

i is the simple interest amount

P is the principal amount invested

r is the rate of interest, in decimal

t is the time in years

Given,

P = 800

r = 6.5% = 6.5/100 = 0.065

t = 2

Substituting, we get the interest amount to be:

`i=Prt\\i=(800)(0.065)(2)\\i=104`

So, the interest earned = 104

Hence, total amount would be:

800 + 104 = $904 (after 2 years)