Question

Lashonda deposits $3000 into an account that pays simple interest at a rate of 2% per year. How much interest will she be paid in the first 3 years?

Answer 1

Lashonda will earn $180 in simple interest over the first 3 years from a $3000 deposit at a 2% interest rate.

Step-by-step explanation:

The question pertains to calculating simple interest earned on a deposit over a period of time. With an initial deposit of $3000 and a simple interest rate of 2% per year, the interest accrued over 3 years can be determined using the formula:

Simple Interest = Principal × Interest Rate × Time

So in this case:

Simple Interest = $3000 × 0.02 × 3

When calculating this we get:

Simple Interest = $3000 × 0.02 × 3 = $180

Lashonda will be paid $180 in interest over the first 3 years.