Equation: A = P(1 + rt) Calculation: First, converting R percent to r a decimal r = R/100 = 3%/100 = 0.03 per year, then, solving our equation
A = 2000(1 + (0.03 × 2)) = 2120 A = $ 2,120.00
The total amount accrued, principal plus interest, from simple interest on a principal of $ 2,000.00 at a rate of 3% per year for 2 years is $ 2,120.00.
