Answer:When earn 2% on $1000 for 2 years if this interest rate is doubled then the interest rate will be 4% and the interest is $80.
How to illustrate the information?
From the information, the person earns 2% on $1000 for 2 years and this interest rate is doubled, the interest rate will be: = 2% × 2 = 4%
It should be noted that simple interest is calculated as:
Interest = Principal × Rate × Time / 100
Interest = 1000 × 4 × 2 /100
Interest = 8000 / 100
Interest = $80