Question

How much interest would $2,000 earn, with simple interest, in two years at therate of 4.2%?​

Answer 1

Answer:

$168

Step-by-step explanation:

The formula we'll use for this is the simple interest formula, or:

I=Prt

Where:

P is the principal amount, $2000.00.

r is the interest rate, 4.2% per year, or in decimal form, 4.2/100=0.042.

t is the time involved, 2....year(s) time periods.

So, t is 2....year time periods.

To find the simple interest, we multiply 2000 × 0.042 × 2 to get that:

The interest is: $168.00