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Deffense [45]
3 years ago
9

How much interest is earned in 2 years on an investment of $2000? The interest rate is 3%.

Mathematics
1 answer:
Lelechka [254]3 years ago
7 0

 In this sum we will calculate using the simple  interest.


Simple interest is calculated from the formula :

I  = PRT

where I is the interest, P is the principal, R is interest rate per year and t is time in years.

I = 2000 × 3 % x 2

We have to turn 3% to its decimal fraction which is 0.03, so:

I = 2000 × 0.03 × 2

I = 60 ×  2

I = 120

Therefore the interest earned in two years will amount to 120 $


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