Principal = $800 Interest Rate = 3.5% Time = 2 years Find the interest earned.

so lets remember the formula for interest first.

#lightbulb

here it is A = P(1 + rt)

all we really have to do is plug in our rates, principles, and time into equation.

P = $800

t = 2 years

r = 6.5% or as a decimal 0.065

now lets look at our new equation that finally has numbers in it

A = 800[1 +(0.065)(2)] first lets take care of the 0.065 and 2 by multiplying them together. thus our new equation.

A = 800(1+ 0.13) then we add the 1 to the 0.13 and get 1.13

800(1.13) from here we just multiply  and that equals 904

since we are looking for what is earned we take 904 and subtract 800 to get that answer. Here is the math.

904 - 800 = 104

he made 104 dollars in 2 years

hope this is right

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