What is $600 at 5% interest for 2 years?

Question

What is $600 at 5% interest for 2 years?

Answer 1

FV=PV(1+i)^N or 600(1.05)²= 661.50 the $30 you earned in interest in the first period earns interest in the second. You cannot use a simple interest formula with compounding

Answer 2

I= prt

this is the simple interest formula just multiply but move the decimal two places to the left to make your rate from a percentage to a decimal. Good luck