Question

What is the simple interest paid on $2,300 at 4% for 2 years?

Answer 1

$184

Explanation:

Answer 2

$2,484

Explanation:

1) Multiply 2300 x .04 because 4% is added yearly. That's 92.

2) Multiply that answer by 2 since the amount is compounded for two years. 92 x 2 = 184.

3) Add the interest and original amount together. 2300 + 184 = $2484