The simple interest can be calculated using the formula:
Simple Interest=P×R×T100\text{Simple Interest}=\frac{P\times R\times T}{100}Simple Interest=100P×R×T
Where:
- P=2000P=2000P=2000 (principal)
- R=2.7%R=2.7%R=2.7% (rate)
- T=6T=6T=6 years (time)
Calculating:
Simple Interest=2000×2.7×6100=32400100=324\text{Simple Interest}=\frac{2000\times 2.7\times 6}{100}=\frac{32400}{100}=324Simple Interest=1002000×2.7×6=10032400=324
The simple interest on the $2000 principal for six years at a rate of 2.7% is $324.
