Question

What is the intrest earned if the principal is $800 and the intrest rate 6.5% and the time is 2 years

Answer 1

Simple interest is given by the formula

... I = Prt

where P is the principal ($800), r is the annual interest rate (0.065), and t is the number of years (2)

... I = $800·.065·2 = $104 . . . . interest earned in 2 years at 6.5%