Question

$600 at 5% for 2 years

Answer 1

So percent means parts out of 100
5%=5/100=0.05

it depends if this is simple interest or compound
simple interest is find 5% of 600 and every year just give you that 5%
compound is find 5% then add that to 600, then next year find 5% of that new amount

so if simple
5% of 600=5/100 times 600=30
2 years
so add 30 times 2=60
600+60=660 total


if compound
5% of 600=5/100 times 600=30
new amound=630
year 2
5% of 630=5/100 times 630=31.5
new amount=661.5


if simple interest then $660.00
if compound then $661.50