Question

Please help, and explain, I don't understand!! You put $1000 into an investment yielding 6% annual interest; you left the

money in for two years. How much interest do you get at the end of those
two years?

Answer 1

$120 in interest

Explanation:

The formula for finding how much interest you get over time is this :

Principal × Rate × Time = Interest you get at the end

Principal is how much you start out with, so in this case that's $1,000.

Rate is the percent annual interest, which in this case is 6%.

Last, time, time in this case is 2 years.

I = (1000)(0.06)(2) = 120

I will get $120 in interest.