Question

Miguel deposits 7000 into an account that pays simple interest at a rate of 2% per year. How much interest will he be paid in the first 2 years?

Answer 1

Step-by-step explanation:

The simple interest formula is:

`i=P* r* t`

Where P is the initial amount, r is the interest rate and t is the time in years:

`i=7,000*0.02*2=280`

Answer:

Miguel will be paid $280 in the first 2 years