Question

Michael invested $2,200 in the stock market for 2 years. If the investment earned 12% interest, how much money in interest did Michael eam in 2 years?

Answer 1

simple interest formula:

I = Prt

where

I is the interest

P is the principal

r is the annual interest rate (as a decimal)

t is time in years

Replacing with P = 2200, t = 2, and i = 0.12, we get:

I = 2200(0.12)(2)

I = 528

Michael earned $528 in interests in two years