Multiple choice

Emma deposits $2,000 in a bank account that offers an annual simple interest rate of 5%. How much interest will she earn in 2 years, and what will be the total amount in her account at the end of 2 years?

  1. Interest: $150; Total amount: $2,150
  2. Interest: $200; Total amount: $2,200
  3. Interest: $210; Total amount: $2,210
  4. Interest: $250; Total amount: $2,250
  5. Interest: $260; Total amount: $2,260
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = P * R * T = 2000 * 0.05 * 2 = 200. Total amount = Principal + Interest = 2000 + 200 = 2200.

AI explanation

The simple interest formula is Interest equals Principal times Rate times Time divided by 100. Substituting the values gives an interest of 2000 times 5 times 2 divided by 100, which equals \$200. The total amount in the account is the principal plus the interest, calculated as 2000 + 200, resulting in \$2,200.

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