149k views
0 votes
How much interest is earned in 2 years on an investment of $2000? The interest rate is 3%.

User Kobame
by
8.2k points

1 Answer

3 votes

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
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories