Question

Kareem deposits $500 into an account that pays simple interest at a rate of 3% per year. How much Interest will he be paid in the first 6 years?

Answer 1

Given that kareem deposits $500 into an account that pays simple interest at a rate of 3% per year.

We have to find the interest got in the first 6 years.

The formula to find the interest on P at an interest rate of R for T years is given by:

$SI=\text{PRT}$

So, the interest is:

$\begin{gathered} SI=500\times0.03\times6 \\ =90 \end{gathered}$

Thus, the interest is $90.