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Simple Interest, SMB-012

$5000 is invested in an account that earns simple interest at the rate of 3.0% per annum.

Calculate the total interest earned in the first two years.   (2 marks)

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`$300`

Show Worked Solution

`P = 5000,\ \ r = 3.0text(%),\ \ n = 2`

`I` `= Prn`
  `= 5000 xx 3.0/100 xx 2`
  `= $300`