Question

Find the simple interest earned on a deposit of $2,800 that earns 2% annual interest after 5 years

Answer 1

$280

Explanation:

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year,

then, solving our equation

I = 2800 × 0.02 × 5 = 280

I = $ 280.00

The simple interest accumulated

on a principal of $ 2,800.00

at a rate of 2% per year

for 5 years is $ 280.00.