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Terry invested $800 at 6% simple interest for one year. What is the total amount after 2 years

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Final answer:

The total amount after 2 years with simple interest, given an initial investment of $800 at a 6% interest rate, is $896.

Step-by-step explanation:

To calculate the total amount after 2 years with simple interest, we use the formula A = P(1 + rt), where A is the total amount, P is the principal amount, r is the interest rate (as a decimal), and t is the time (in years).

In this case, P = $800, r = 0.06, and t = 2.

Plugging these values into the formula, we get :

A = 800(1 + 0.06 * 2)

= $896.

Therefore, the total amount after 2 years is $896.