if you start out with $1000 and you earn simple interest at 2% per year how much interest will you earn over a ten year period, and how much money amount would you earn at the end of ten years?

Question

if you start out with $1000 and you earn simple interest at 2% per year how much interest will you earn over a ten year  period, and how much money amount would you earn at the end of ten years?

anonymous · Answer

Simple Interest = Principal x Rate as a decimal x time
Principal:  $1000
Rate:  2% or 0.02 as a decimal (per year)
Time:  10 years
I = 1000 x 0.02 x 10 = 200 (this is the interest you earned).

Then, add that to the principal to find the total money amount which is 200 + 1000 = $1200.