SOLUTION: QUESTION: Calculate the amount of simple interest on $9,000 deposited at an interest rate of 5% for 2 years. Explain how you got your answer.

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Question 428025: QUESTION: Calculate the amount of simple interest on $9,000 deposited at an interest rate of 5% for 2 years. Explain how you got your answer.
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
simple interest is not compounded interest.

it does not assume re-investment of the profits.

to find simple interest, you multiply the principal by the interest rate to get the interest.

9000 * .05 = 450 interest.

multiply the interest by 2 to get 900 interest for the 2 years.

formula would be p * i * n

p is the principal (9000)
i is the interest rate (.05)
n is the number of years (2)

formula becomes 9000 * .05 * 2 = 900