Final answer:
To find the simple interest and total amount, you multiply the principal by the rate and the time. The interest on a principal of $13,700 at 5% for 2 years is $1,370, making the total amount $15,070.
Step-by-step explanation:
The student is asking how to calculate simple interest and the total amount (Principal + Interest) after 2 years given a principal amount of $13,700, a time period of 2 years, and an interest rate of 5%. To solve this, we use the formula: Interest = Principal × rate × time. Plugging in the numbers, we get Interest = $13,700 × 0.05 × 2.
Now, let's do the calculations:
Interest = $13,700 × 0.05 × 2 = $1,370.
The Total Future Amount = Principal + Interest
Total Future Amount = $13,700 + $1,370 = $15,070.
The correct answer to the student's question is therefore option (a) with Interest (I) being $1,370 and the Total Amount (A) being $15,070 after 2 years.