Question

May invested $500 at 8% p.a. for 2 years. How much simple interest did she earn?

Answer 1

`\fbox{\begin{minipage}{5.5em}80 dollars\end{minipage}}`

Explanation:

Given:

May invested $500 at 8% p.a. for 2 years.

Solve for:

The simple interest she earned.

Step 1: Define the formula to calculated the simple interest

Interest = Principal x Rate x Year

Step 2: Perform the calculation

With Principal = 500$, Rate = 8% = 8/100 = 0.08, and Year = 2

Interest = 500 x 0.08 x 2 = 80$

Hope this helps!

:)

Answer 2

The simple interest she earns is $80

p=500

r=8

t=2

Now,

SI=p×t×r/100

SI=500×2×8/100

SI=80