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Kareem deposits $500 into an account that pays simple interest at a rate of 3% per year. How much Interest will he be paid in the first 6 years?

User Jeroen Wyseur
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1 Answer

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Given that kareem deposits $500 into an account that pays simple interest at a rate of 3% per year.

We have to find the interest got in the first 6 years.

The formula to find the interest on P at an interest rate of R for T years is given by:


SI=\text{PRT}

So, the interest is:


\begin{gathered} SI=500*0.03*6 \\ =90 \end{gathered}

Thus, the interest is $90.

User Cheng Yang
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