175k views
4 votes
1. If $2000 is invested at 3% annual simple interest for 2 years. How much interest is earned? What is the total value of the account?

User Cvs
by
7.1k points

1 Answer

4 votes

Explanation:

To calculate the interest earned, we can use the formula:

Interest = Principal x Rate x Time

where Principal is the amount invested, Rate is the interest rate, and Time is the time period in years.

In this case, the Principal is $2000, the Rate is 3%, and the Time is 2 years.

So,

Interest = $2000 x 0.03 x 2 = $120

Therefore, the interest earned is $120.

To find the total value of the account after 2 years, we can add the interest earned to the principal:

Total value = Principal + Interest = $2000 + $120 = $2120

Therefore, the total value of the account after 2 years is $2120.

User Zarinah
by
8.2k points