Question

How much simple interest would be earned on a certificate of deposit worth

$2,000 over a period of 5 years with an interest rate of 2%?​

Answer 1

Explanation:

The simple interest formula is I = prt, where I is the interest earned, p is the initial investment, r is the interest rate as a decimal, and t is the time in years. Filling in according to our info:

I = 2000(.02)(5) so

I = 200