(a) The interest earned is $60 and
(b) Balance of the account is $660.
"Simple interest is a method to calculate the amount of interest charged on a sum at a given rate and for a given period of time".
For the given situation,
Principal, P = $600
Rate of Interest, R = 5% = 0.05
Time, T = 2 years
The formula to find Simple interest,
S.I. = P × R × T.
On substituting the above values,
S.I. = [tex]600[/tex] ×[tex]0.05[/tex] × [tex]2[/tex]
⇒S.I. = [tex]60[/tex]
Total balance = Principal + S.I.
⇒[tex]600+60[/tex]
⇒[tex]660[/tex]
Hence we can conclude that
(a) The interest earned is $60 and
(b) Balance of the account is $660.
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