Question

Jim depisit $4000 into an account that pay simple interest at a rate 2% per year how much interest will he be paid. in the first 3 year

Answer 1

hello

this question relates to simple interest and to solve this, we can use the formula of simple interest

$\begin{gathered} s\mathrm{}i=p(1+rt) \\ s\mathrm{}i=\text{simple interest} \\ p=\text{ principal} \\ r=\text{rate} \\ t=\text{time} \end{gathered}$$\begin{gathered} p=4000 \\ r=2\text{ \% = 0.02} \\ t=3 \end{gathered}$$\begin{gathered} s\mathrm{}i=p(1+rt) \\ s\mathrm{}i=4000(1+0.02\times3) \\ s\mathrm{}i=4000(1+0.06) \\ s\mathrm{}i=4000\times1.06 \\ s\mathrm{}i=4240 \end{gathered}$

his interest woulf be 4240 minus 4000

$\text{ interest= 4240-4000=240}$

his interest during the three years period would be $240 and the amount paid would be $4240