223k views
0 votes
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

User Sharmilee
by
7.8k points

1 Answer

1 vote

Final answer:

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.

User Stefan Wanitzek
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories