Answer:
$200 will be earned on a certificate of deposit worth $2000 over a period of 5 years with an interest rate of 2%
Step-by-step explanation:
Simple interest is applied on a amount as a whole. The interest is calculated for t time period where t is in years.
The simple interest is given by the formula:
[tex]I = Prt[/tex]
Here P is the principal amount, r is the annual rate and t is time in years
Given
P = $2000
t = 5 years
r = 2%
Putting the values in the formula
[tex]I = 2000 * 0.02 * 5 \\I = \$200[/tex]
Hence,
$200 will be earned on a certificate of deposit worth $2000 over a period of 5 years with an interest rate of 2%
