The interest formula is as follows:
Amount Invested · Rate = Interest Earned
If we invest $100 at 3% interest per year,
how much do we earn that year?
Well based on our formula, we can simply multiply 100 · 3%.
Think of the 3% as 3/100.
So we have 100 · 3/100 and the 100's cancel and we're left with 3.
So $3 is earned in 1 year.
So after two years, you will have double that or $6.
