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How much interest is earned in 2 years on $13,006 invested at an interest rate of 5% per year?

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Alexander F. | Patient and Passionate University of South Florida Math/Science TutorPatient and Passionate University of Sou...
Hello Amanda,
Since this problem doesn't say anything about compound interest, we can assume this is a simple interest problem. The equation for simple interest is:
I = Prt
where our interest I is the principle amount P times the rate r multiplied by time t.
I = 13006 * 0.05 * 2
I = 1300.6