Question

How much interest is earned on $2,150 at 6.7% for 2 years?

Answer 1

Here is how you would solve this:

Starting amount = $2,150
Interest Rate = 6.7% -> convert to decimal form (0.067)
Amount of time = 2 years
$2,150 × 0.067 × 2 =
289.10 in interest

Answer 2

At the end of 2 years, your savings will have grown to $2,447.

You will have earned in $297 in interest.