Question

All deposits $700 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 4 years?

Answer 1

To calculate the interest, use the formula: Interest = Principal x Rate x Time. In this case, the principal is $700, the rate is 5%, and the time is 4 years. Therefore, he will be paid $140 in interest over the first 4 years.

Step-by-step explanation:

To calculate the interest, we can use the formula:

Interest = Principal x Rate x Time

In this case, the principal is $700, the rate is 5% (or 0.05), and the time is 4 years. Plugging in these values, we get:

Interest = $700 x 0.05 x 4 = $140

Therefore, he will be paid $140 in interest over the first 4 years.