Question

You deposit $800 in a savings account. The account earns 2% simple
interest per year

Answer 1

A= P(1+rt)

Principal (P) = 800

Rate (R) = 2%

Time (T) = 8 years

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year.

Solving your equation:

A = 800(1 + (0.02 × 8)) = 928

A = $928.00

The total amount accrued, principal plus interest, from simple interest on a principal of $800.00 at a rate of 2% per year for 8 years is $928.00.