Calculate the simple interest earned on an investment of

Question

Of $25 000 at 8.5% per annum for 2 years

Answer 1

Interest in one year = 8.5 % of 25000

1% of 25000 = 25000 / 100 = $ 250

8.5 % = 8.5 x 250 = $ 2125

So simple interest is $ 2125 per year

So in 2 years 2 x 2125 = $ 4250

(quick way to calculate this 25000 x 0.085 x 2)