Question

Layla deposit $600 into an account that pays simplest interest at a rate of 2% per year how much interest will she be paid in the first three years

Answer 1

Hello! To calculate compound interest, we must use the formula below, where:

• P = principal

,

• R = rate/100

,

• T = time

$\begin{gathered} SI=P\cdot R\cdot T \\ SI=600\cdot0.02\cdot3 \\ SI=36 \end{gathered}$

So, in the first three years, she will receive $36.