What is the interest amount for $2000 at 5% for one year?

To determine the interest amount for $2000 at a rate of 5% for one year, you apply the formula for simple interest:

Interest = Principal × Rate × Time.

In this case, the principal amount is $2000, the rate is 5% (which can be expressed as 0.05 when calculating), and the time is 1 year.

Plugging in the values:

Interest = $2000 × 0.05 × 1 = $100.

This calculation shows that for one year, the interest accrued on a principal of $2000 at a rate of 5% is indeed $100. This reflects how interest is calculated, underscoring the relationship between the principal amount, interest rate, and time period involved. Hence, understanding this formula is essential for managing finances and comprehensively evaluating investment returns or loan costs.