Answer:
Interest Earned: $400 / New Account Balance: $10,400
Step-by-step explanation:
We will use the simple interest formula for this problem.
A = P (1 + rt)
P = initial balance
r = annual interest rate
t = time
We can plug in your values into the equation. Remember to convert the percent into its decimal form (2% -> .02):
A = 10,000(1 + .02 x 2) = 10,400
