What is the total amount after 2 years if $1000 is invested at a simple interest

What is the total amount after 2 years if $1000 is invested at a simple interest rate of 6% per annum?

What is the total amount after 2 years if $1000 is invested at a simple interest rate of 6% per annum?

Step 1: Identify the principal amount, which is $1000.
Step 2: Identify the interest rate, which is 6% per annum.
Step 3: Identify the time period, which is 2 years.
Step 4: Calculate the simple interest using the formula: Simple Interest = (Principal * Rate * Time) / 100.
Step 5: Substitute the values into the formula: Simple Interest = (1000 * 6 * 2) / 100.
Step 6: Calculate the simple interest: Simple Interest = (12000) / 100 = $120.
Step 7: Calculate the total amount by adding the principal and the interest: Total Amount = Principal + Interest.
Step 8: Substitute the values: Total Amount = 1000 + 120.
Step 9: Calculate the total amount: Total Amount = $1120.

No concepts available.