Answer:
You want to calculate the interest on $5000 at 13% interest per year after 2 year(s).
The formula we'll use for this is the simple interest formula.
Where:
P is the principal amount, $5000.00.
r is the interest rate, 13% per year, or in decimal form, 13/100=0.13.
t is the time involved, 2....year(s) time periods.
So, t is 2....year time periods.
To find the simple interest, we multiply 5000 × 0.13 × 2 to get that:
The interest is: $1300.00
Usually now, the interest is added onto the principal to figure some new amount after 2 year(s),
or 5000.00 + 1300.00 = 6300.00. For example:
If you borrowed the $5000.00, you would now owe $6300.00
