Question

Kate deposits $800 in a bank

account that pays 4% in simple
interest. How much interest does
Kate receive over 5 years?

Answer 1

C

Explanation:

Use formula

`I=P\cdot r\cdot t,`

where

I = interest

P = rpincipal

r = rate (as decimal)

t = time (in years)

In your case,

P = $800

r = 0.04 (4%)

t = 5,

so

`I=\$800\cdot 0.04\cdot 5\\ \\I=\$160`