How much interest is earned in two years in two years on $200 in a bank account at an interest rate of 6%
simple interest: 200*.06*2
24
To calculate the interest earned on $200 in a bank account at an interest rate of 6% for two years, we need to apply the following formula:
Interest = Principal × Rate × Time
Where:
Principal = $200
Rate = 6% (or 0.06 in decimal form)
Time = 2 years
To find the interest earned, we can substitute the given values into the formula:
Interest = $200 × 0.06 × 2
Calculating the above expression:
Interest = $200 × 0.12
Therefore, the interest earned in two years on $200, at an interest rate of 6%, is $24.