Question

Carlos deposits $400 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 6 years?

Answer 1

Carlos will be paid $144 in interest on his $400 deposit at a simple interest rate of 6% per year over the first 6 years.

Step-by-step explanation:

To calculate how much interest Carlos will be paid in the first 6 years on a $400 deposit at a simple interest rate of 6% per year, we'll use the formula for simple interest:

Simple Interest = Principal × Rate × Time

Where the Principal is $400, the Rate is 0.06 (6%), and the Time is 6 years. Plugging these values into the formula provides the interest Carlos will earn:

Simple Interest = $400 × 0.06 × 6

Simple Interest = $400 × 0.36

Simple Interest = $144

Therefore, Carlos will be paid $144 in interest over the first 6 years.