Final answer:
To calculate interest with a principal of $1000, a rate of 6%, and a time of 2 years, the formula I = PRT becomes $1000 × 0.06 × 2, resulting in an interest of $120.
Step-by-step explanation:
To calculate the interest using the formula I = PRT (Interest equals Principal times Rate times Time), where the principal is $1000, rate is 6%, and time is 2 years, follow these steps:
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- Convert the rate from a percentage to a decimal by dividing by 100: 6% ÷ 100 = 0.06.
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- Multiply the principal ($1000) by the decimal rate (0.06).
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- Multiply the result from step 2 by the time in years (2).
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- The calculation is $1000 × 0.06 × 2.
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- So the interest earned over 2 years is $120.
The formula Principal + (principal × rate × time) is a general expression for finding the total amount after interest is applied, but in this case, we only need to find the interest earned.