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? I do not know what type of interest this is and that is not wha

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Question 536236: 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? I do not know what type of interest this is and that is not what i am looking for.
Answer by fcabanski(1391) About Me  (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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