Question

Charmaine deposits $7000 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 2 years

Answer 1

Hello!

Simple interest just means that she will be paid 4% of the initial amount every year. It will not compound. Let's find our number and multiply by 2.

0.04(7000)=280

280(2)=560

Therefore, she will be paid $560

I hope this helps!