Answer:
The interest earned is $96.60
Step-by-step explanation:
Since we are working the a simple interest problem, we will use the formula
[tex]I=Prt[/tex],
Where P represents the principal, r represents the rate as a decimal, and t represents the time in years. First, we need to change the 4.6% into a decimal by dividing by 100:
[tex]4.6\div 100 = 0.046[/tex]
From our given information and our decimal rate, we have:
[tex]P=1050\\r=0.046\\t=2[/tex]
Substituting these into our equation, we get:
[tex]I=1050(0.046)(2)\\I=96.6[/tex]
We write that as $96.60 in context of the problem.
