$600 at 5% for 2 years

Question

$600 at 5% for 2 years

Answer 1

This problem is worded incompletely. What are you attempting to determine, Aiden? If you are calculating simple interest, for example, then the formula is I = Prt, where I= the interest accumulated, P = the principal (initial deposit or investment), r = the interest rate, and t = the amount of time the money accrues interest.

 

Substitution into the formula gives us:

 

I = 600(.05)(2)

 

Once you perform this calculation, add it to the $600 to obtain the balance of the account after 2 years

 

All of this assumes that the problem asks you to calculate the simple interest.