SOLUTION: Bob invests $2000 at 6% interest for 5 years. How much will he earn in 5 years? How much will he have after 5 years?

Question 536120: Bob invests $2000 at 6% interest for 5 years. How much will he earn in 5 years? How much will he have after 5 years?
Answer by fcabanski(1391) (Show Source): You can put this solution on YOUR website!
If the problem doesn't specify, then it's simple interest.

The formula for simple interest

P = Principal = 2000

r = interest rate =6% = 6/100 = .06

t = time (in years) = 5

I = interest earned = solution

I=P*r*t

I =2000*.06*5= $600

He will earn $600 in 5 years. He will have the original principal plus the interest after 5 years.

$2000+$600=$2600.

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