Question

What is the simple interest on $2500 invested at an interest rate of 6% for 2 years?

Answer 1

2500 x 0.06 x 2
= 300
The simplest interest is $300

Answer 2

The simple interest is $300.

Explanation:

Find the Interest amount.

I: Interest ?

P: Principle Amount $2500

R: Rate 6% = .06

T: Time Period (in years) 2 Years

Convert into equation to find Simple Interest

I = Prt

I = (2500)(.06)(2)

Calculate

I = 300