Question

Shen desposits 5000 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 4 years?

Answer 1

Answer:

1200

Step-by-step explanation:

Given that Shen deposits 5000 into account.

The account is paid simple interest at 6%

Period Shen keeps = 4 years

Principal P =5000

T= no of years =4

r=Rate of interest =6%

Nature of interest =Simple

Simple interest =$\frac{PTR}{100} \\=\frac{5000(4)6}{100}\\=1200$

Hence we get simple interest Shen get for deposit of 5000 for 4 years at simple interest 6% is

1200

Answer 2

Answer:

1200

Step-by-step explanation:

From question statement,we observe that

Principal  = 5000

Interest rate  = 6 percent  = 0.06

Time  = 4 years

We have to find interest by using principal, interest rate and time.

Since, we know that

Interest  = Principal×interest rate×time

Interest  = 5000×.06×4

Interest  = 1200

Shen will pay 1200 interest in the first 4 years.