Question

Ravi deposits $600 into an account that pays simple interest at a rate of 4% per year. How much interest will he be paid in the first 6 years?

Answer 1

Ravi will be paid $144 in interest in the first 6 years.

Step-by-step explanation:

In this question, Ravi deposits $600 into an account with a simple interest rate of 4% per year. To find the interest he will be paid in the first 6 years, we can use the formula:

Interest = Principal * Rate * Time

Substituting the given values, we have:

Interest = $600 * 0.04 * 6 = $144

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

Answer 2

Just find the interest paid after one year, and then multiply the result by 6 (years). This gives you the amount of simple interest.

The easiest approach would be to use the formula i = p r t. In this case p = $600, r = 0.04, and t = 6 years.