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

1200

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.

Answer 2

1200

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 =
`(PTR)/(100) \\=(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