Question

borunda Sports $8,000 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 3 years?

Answer 1

The simple interest formula is

$I=P\cdot r\cdot t$

Where P = 8,000, r = 0.06, and t = 3.

$I=8,000\cdot0.06\cdot3=1,440$

Hence, the amount of interest after 3 years is $1,440.