Question

Aldo deposits $2000 into an account that pays simple interest at a rate of 3% per year. How much interest will he be paid in the first 5 years?

Answer 1

To calculate the interest, we can use the formula: Interest = Principal x Rate x Time. In this case, Aldo will be paid $300 in interest in the first 5 years.

Step-by-step explanation:

To calculate the interest, we can use the formula:

Interest = Principal × Rate × Time

In this case, the Principal is $2000, the Rate is 3% (or 0.03 as a decimal), and the Time is 5 years. Plugging in the values:

Interest = $2000 × 0.03 × 5 = $300

Therefore, Aldo will be paid $300 in interest in the first 5 years.