22.9k views
2 votes
Calculate the interest .1= PRT, principal =$1000,rate=6% time =2 years

User Carlos J
by
7.8k points

1 Answer

1 vote

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:


  1. Convert the rate from a percentage to a decimal by dividing by 100: 6% ÷ 100 = 0.06.

  2. Multiply the principal ($1000) by the decimal rate (0.06).

  3. Multiply the result from step 2 by the time in years (2).

  4. The calculation is $1000 × 0.06 × 2.

  5. 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.

User Jackberry
by
9.7k points

No related questions found