Question

find the simple interest earned to the nearest cent for each principal, interest rate, and time. $300, 5%, 2 years.

Answer 1

A = $330.00

(I = A - P = $30.00)

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 5%/100 = 0.05 per year.

Solving our equation:
A = 300(1 + (0.05 × 2)) = 330
A = $330.00

The total amount accrued, principal plus interest, from simple interest on a principal of $300.00 at a rate of 5% per year for 2 years is $330.00.