Question

Find the simple interest on a $500 investment made for 2 yr at an interest rate of 8%/year. What is the accumulated amount?

Answer 1

Explanation:

Principal(p) =$500

Time(t) = 2years

Rate(r) = 8% p.a.

Simple Interest = (p*r*t)/100

= ($500*8*2)/100

= $80

Accumulated amount = principle + Interest for 1st year+ Interest for 2nd yr

=$500+$80+$80

= $660

Answer 2

The accumulated amount is $660

Explanation:

Given;

• Principal amount (P) = $500
• Time (T) = 2 years
• Rate (R) = 8%

To Find;

• Simple Interest (SI)

Formula;

• SI = PTR ÷ 100

So,

SI = PTR/100

SI = 500 × 2 × 8 ÷ 100

SI = 5 × 2 × 8

SI = $80 (for 1st year)

For accumulate amount

$500 + $80 + $80 = $660

Thus, The accumulated amount is $660