Answer:
Interest charged over two years: $20
Total amount: $220
Step-by-step explanation:
The formula for simple interest is A = P ( 1 + rt ).
A = 200 ( 1 + (0.05 * 2))
A is the total amount ( interest + principle )
A = 220
P is the principle ( initial amount deposited )
P = 200
R refers to rate (in percent)
R = 0.05
T = time period (in years)
T = 2
