Given:
Principal amount, P = $640
Time, T = 2 years
Interest rate, R = 3%
Let's find the simple interest.
To find the simple interest, apply the Simple Interest formula:
[tex]I=\frac{P\ast R\ast T}{100}[/tex]
Substitute values into the formula:
[tex]\begin{gathered} I=\frac{640\ast3\ast2}{100} \\ \\ I=\frac{3840}{100} \\ \\ I=38.40 \end{gathered}[/tex]
Therefore, the simple interest to the nearest cent is $38.40
ANSWER:
$38.40
