How much simple interest would be earned on a certificate of deposit worth $2,000 over a period of 5years with an interest rate

Question

3 years ago

15

of 2%?

2 answers:

Mazyrski [523] · Answer 1 · 2022-04-27T14:33:31+03:00

Answer:

$200 will be earned on a certificate of deposit worth $2000 over a period of 5 years with an interest rate of 2%

Step-by-step explanation:

Simple interest is applied on a amount as a whole. The interest is calculated for t time period where t is in years.

The simple interest is given by the formula:

$I = Prt$

Here P is the principal amount, r is the annual rate and t is time in years

Given

P = $2000

t = 5 years

r = 2%

Putting the values in the formula

$I = 2000 * 0.02 * 5 \\I = \$200$

Hence,

$200 will be earned on a certificate of deposit worth $2000 over a period of 5 years with an interest rate of 2%

mrs_skeptik [129] · Answer 2 · 2022-04-27T15:56:04+03:00

7 0

Answer:$200

Step-by-step explanation:

Simple interest=(Principle×Rate×Time)/100

=(2000×2×5)/100

=$200