9514 1404 393
Answer:
- interest: $16
- account total: $216
Step-by-step explanation:
The amount of interest is given by the simple interest formula:
I = Prt . . . . where P is the amount earning interest, r is the annual rate, t is the number of years
I = $200·0.04·2 = $16.00
The simple interest earned in 2 years is $16.00.
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The total of principal and interest is found by adding those values:
$200.00 +16.00 = $216.00
The total amount is $216.00.
