Question

What is the interest earned of 600$ at 5% for 2years

Answer 1

$60 interest

Explanation:

divide 5 by 100 = 0.05

multiply 0.05 by 600 = 30

then multiply 30 by the number of years (2) 30×2= 60

60 dollars interest

I think

Answer 2

Simple interest , I, is calculated by multiplying the principal, P, by the rate,r, by the time, t, in years:

I = P * r * t

Here, P = $600

r = 0.05 (decimal value for 5%)

t = 2 years

Part a)

The interest earned will be:

I = P * r * t

I = 600 * 0.05 * 2

I = $60

Part b)

The balance in the account will be $600 plus the interest earned or:

$600 + 60 = $660