What is
$406 simple interest at 1 percent for 2 years

The formula we'll use for this is the simple interest formula, or:

I = P x r x t

Where:

P is the principal amount, $406.00.

r is the interest rate, 1% per year, or in decimal form, 1/100=0.01.

t is the time involved, 2year(s) time periods.

So, t is 2year time periods.

To find the simple interest, we multiply 406 × 0.01 × 2 to get that:

The interest is: $8.12

Usually now, the interest is added onto the principal to figure some new amount after 2 year(s),

or 406.00 + 8.12 = 414.12. For example:

If you borrowed the $406.00, you would now owe $414.12

If you loaned someone $406.00, you would now be due $414.12

If owned something, like a $406.00 bond, it would be worth $414.12 now.

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step-by-step explanation: