Question

Kira deposits $400 into an account that pays simple interest at a rate of 6% per year. How much interest will she be paid in the first 5 years

Answer 1

Kira will be paid $120 in simple interest over the first 5 years for her $400 deposit at a 6% annual interest rate.

Step-by-step explanation:

Kira has deposited $400 into an account that pays simple interest at a rate of 6% per year.

To calculate the interest she will be paid in the first 5 years, we use the formula for simple interest:

Interest = Principal × Rate × Time.

Here, the principal (P) is $400, the rate (r) is 6% (or 0.06 as a decimal), and the time (t) is 5 years.

Interest = $400 × 0.06 × 5

Interest = $24 × 5

Interest = $120

Therefore, Kira will be paid $120 in interest over the first 5 years.