Question

rafael disposed $2,000 into an account that pays simple interest at a rate of 2% per year. How much interest will he be paid in the first 4 years?

Answer 1

$160

Step-by-step explanation

Simple Interest accrued on an amount invested, P, at a rate of R% and over a period of time, T, is given as

Interest = (PRT/100)

P = Principal = $2000

R = Rate = 2% yearly

T = Time = 4 years

Interest = (PRT/100)

Interest = (2000 × 2 × 4/100)

Interest = $160

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