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How much interest is earned in 2 years on an investment of $2000? The interest rate is 3%.

User Kobame
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1 Answer

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In this sum we will calculate using the simple interest.


Simple interest is calculated from the formula :

I = PRT

where I is the interest, P is the principal, R is interest rate per year and t is time in years.

I = 2000 × 3 % x 2

We have to turn 3% to its decimal fraction which is 0.03, so:

I = 2000 × 0.03 × 2

I = 60 × 2

I = 120

Therefore the interest earned in two years will amount to 120 $


User Bharat Soni
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