Question

Edward deposited ​$10,000 into a savings account 2 years ago. The simple interest rate is ​2%. How much money did Edward earn in​ interest?

Answer 1

$ 10,400

Explanation:

Interest = P( 1 + rt)

10000 { 1 + ( 0.02 x 2 )

= 10000 * 1.04

= 10, 400

Answer 2

Explanation:

Simple interest = PRT/100

S I = $10000 x 2 x 2

_____________

100

SI = $400