Answer:
700
Step-by-step explanation:
P is the principal amount, $5000.00.
r is the interest rate, 7% per year, or in decimal form, 7/100=0.07.
t is the time involved, 2....year(s) time periods.
So, t is 2....year time periods.
To find the simple interest, we multiply 5000 × 0.07 × 2 to get that:
The interest is: $700.00
Usually now, the interest is added onto the principal to figure some new amount after 2 year(s),
or 5000.00 + 700.00 = 5700.00. For example:
If you borrowed the $5000.00, you would now owe $5700.00
