+23246 Use the formula: A = P(1 + r)y
A = 1500(1 + 0.09)2
A = 1500(1.09)2
Now, finish the calculation.
The Heading of his/her question says "Simple Interest".
1500 x 0.09 x 2 =$270 Simple interest for 2 years.
$1,500 + $270 = $1,770 - Balance after 2 years.
\(I=\frac{PRT}{100}\) where \(I\) is the interest (What you will gain extra after the 2 years)
\(P\) is the principle (The money you put)
\(R\) is the rate of 9% etc..
The equation above finds the interest and not the total money!
Indeed, total money after 2 years is just the same equation +p
\(A=\frac{PRT}{100}+P\)
Now if you want interest to use this: \(I=\frac{PRT}{100}\)
\(I=\frac{1500*9*2}{100}=270 \) dollars extra
Total amount: \(270+1500=1770\)
