To calculate the simple interest on $2, the formula used is:
Simple Interest=P×R×T100\text{Simple Interest}=\frac{P\times R\times T}{100}Simple Interest=100P×R×T
where
- PPP is the principal amount (in this case $2),
- RRR is the annual rate of interest (in percent),
- TTT is the time period in years.
Without knowing the rate of interest and the time period, the exact simple interest cannot be calculated. If those values are provided, the interest can be computed by substituting into the formula above.
