$600 at 5% for 2 years

Question

i don't know it please help me

Answer 1

You have $600. This amount is called the "principal". The interest rate is 5% and the time is 2 years.

So, for the first year your interest will be 5% of 600 = 5/100*600 = $30

No, for the second year, your new principal will be $630. Now the interest will be 5% of 630 = 5/100*630 = $31.5

So, the total interest for 2 years will be = Interest in Year 1 + Interest in Year 2 = $30 +$31.5 = $61.5

Answer 2

I would calculate your interest earned by taking $600 X ..05, which gives Interest of $30 for 1 year, with a total of $630. Repeat calculation with 630 X .05 = $31.50 for interest for 2nd year. Add to $630 for a total of $661.50 at the end of the second year.

Answer 3

If you want the interest accrued:

i = p * r * t

i = (600)(0.05)(2)

i = (30)(2)

i = 60