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1 vote
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Seth opens a savings account with $300. The annual interest rate is 6% how much simple interest will Seth earn after 2 years? Use the formula for simple interest: I=pxrxt.

User John Ingle
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1 Answer

8 votes
8 votes

Answer:

$36

Explanation:

The p stands for principal (amount of money that is in the account), r is the rate (the percentage of interest) and t is the time (time can be recorded in any format e.g. years, months, weeks but the most common one is years). First you take the p from the equation and replace it with 300, then you take 6% and then replace the t for 2. 300 multiplied by 6% is 18. this is the interest for one year. 18 times by 2 (the amount of time in the equation) is 36. So after two years Seth will earn $36 and the total amount of money in his account will be $336

User Tsorn
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