Suppose you deposit $10,000 for 2 years at a rate of 10%.
a)
To calculate the interest earned on the deposit, use the formula:
Interest = Principal * Rate * Time
In this case, the principal is $10,000 (the initial deposit), the rate is 10% (0.10 expressed as a decimal), and the time is 2 years.
So, to calculate the interest:
Interest = $10,000 * 0.10 * 2
= $2,000
Therefore, the interest earned on the deposit is $2,000.