Answer:
year after 3 year(s).
The formula we'll use for this is the simple interest formula, or:
Where:
P is the principal amount, $7000.00.
r is the interest rate, 2% per year, or in decimal form, 2/100=0.02.
t is the time involved, 3....year(s) time periods.
So, t is 3....year time periods.
To find the simple interest, we multiply 7000 × 0.02 × 3 to get that:
The interest is: $420.00
Usually now, the interest is added onto the principal to figure some new amount after 3 year(s),
or 7000.00 + 420.00 = 7420.00. For example:
If you borrowed the $7000.00, you would now owe $7420.00
If you loaned someone $7000.00, you would now be due $7420.00
If owned something, like a $7000.00 bond, it would be worth $7420.00 now.
