If a person invests $800 at a simple interest rate of 7% per annum, how much int

If a person invests $800 at a simple interest rate of 7% per annum, how much interest will he earn in 2 years?

If a person invests $800 at a simple interest rate of 7% per annum, how much interest will he earn in 2 years?

Step 1: Identify the principal amount (the initial investment). In this case, it is $800.
Step 2: Identify the interest rate. Here, it is 7% per annum.
Step 3: Identify the time period for the investment. In this case, it is 2 years.
Step 4: Use the simple interest formula: Simple Interest = (Principal * Rate * Time) / 100.
Step 5: Plug in the values: Simple Interest = (800 * 7 * 2) / 100.
Step 6: Calculate the multiplication: 800 * 7 = 5600, then 5600 * 2 = 11200.
Step 7: Divide by 100 to find the interest: 11200 / 100 = 112.
Step 8: The total interest earned in 2 years is $112.

Simple Interest – The calculation of interest earned on a principal amount over a specific period at a fixed rate.