Question

Ivanna deposits $500 into an account that pays simple interest at a rate of 6% per year. How much interest will she be paid in the first 2 years?

Answer 1

Ivanna after 2 years of 6% intrest will have 561.8 $ in her accout.

Explanation:

500 times 6% can be done like 500 x 0.06 which is 30. So 530. Then 530 time the 6% which is 530 x 0.06 is 31.8. So 530 + 31.8 = 561.8$

Answer 2

$60 in interest

Explanation:

To find interest, use the tried and true method of I = Prt (I is the interest, P is the principal, r is the rate, and t is the time (in years))

I = 500* 2 * 6% (What I do is go on and multiply the principal by the time)

I = 1,000 * 6% (Now to convert 6% and 1,000 into fractions)

I = 1,000/1 * 3/50 (Cross-cancel if needed here; The GCF of 50 and 1,000 is 50)

I = 20/1 * 3/1 (Just remove the /1 part here, they're wholes!)

I = 20 * 3 (Multiply and you have your answer!)

I = $60