Question

Find the simple interest earned for principal of $2,000 at and 8% rate for 5 years.

Answer 1

Answer:

$2800.00

Step-by-step explanation:

A total accrued amount 800 = principal (P) $2000 + interest (I)

R Rate of interest per year decimal - 0.08

X Rate of interest per year percentage - 8%

T time period months or years - 5 years

Equation will be A = P (1 + RT)

first convert X to R = percentage to decimal

X = R/100 = 8%/100 = 0.08 per year

Solving:

A = 2000 (1 + (0.08 x 5)) = 2800

A = $2800