Answer:
(a) $60 | (b) $660
Step-by-step explanation:
We can use the simple interest formula for this:
[tex]I=Prt[/tex]
I = interest amount
P = principal amount
r = interest rate (decimal form)
t = time (years)
First, change 5% into its decimal form:
5% -> [tex]\frac{5}{100}[/tex] -> 0.05
Next, plug in the values into the equation:
[tex]I=600(0.05)(2)[/tex]
[tex]I=60[/tex]
The interest earned is $60. To find the total balance, just add the $600 back.
[tex]600+60=660[/tex]
The total interest earned is $60 and the total is $660.
