The simple interest formula is I=Prt, where I is the interest, P is the principal, R is the the interest rate, and T is the time. What is the interest if the principal is $10,000, the interest rate is 2%, and the time is 8 years?

$16

$160

$1600

$160,000

A = $11,600.00

(I = A - P = $1,600.00) < - is your Answer

Equation:

A = P (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year.

Solving our equation:

A = 10000 (1 + (0.02 * 8)) = 11600

A = $11,600.00

The total amount accrued, principal plus interest, from simple interest on a principal of $10,000.00 at a rate of 2% per year for 8 years is $11,600.00.