How to do the steps

The formula for simple interest is as follows: ** I = Prt** , where

** I** = **interest**

**P** = **Principal** (amount borrowed)

**r** = **interest rate** (in decimal form)

**t** = **time** (period of time the amount is borrowed for)

Given: **P** = $**8200**

** r** = 11%/100% = **0.11**

** t** = **2** years

**I** =** ?**

I = Prt

**I** = (8200)·(0.11)·(2) = **1804**

Therefore, the interest on borrowing $8200 for 2 years at 11% interest rate is
**$1804**.

If you are looking to find the amount to pay back after 2 years, it is the Principal plus the interest which is.....

Principal + interest = 8200 + 1804 = 10,004 ....

...so the amount to pay back is $10,004