Given,
The principal amount is $700.
The rate of interest is 5%.
The time period is 2 year.
The expression for simple interest is,
[tex]\text{Simple interest =}\frac{P\times R\times T}{100}[/tex]Here,
P=principal
T=time
R =rate
Substituting the value then,
[tex]\begin{gathered} \text{Simple interest=}\frac{700\times5\times2}{100} \\ \text{Simple interest=}\frac{7000}{100} \\ \text{Simple interest=}70 \end{gathered}[/tex]The total amount after two year is,
[tex]\begin{gathered} \text{Amount}=\text{principal }+\text{simple interest} \\ \text{Amount}=700+60=760 \end{gathered}[/tex]Hence, the amount she owe after 2 years is $760.
