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April deposit $600 into a new savings account that earns 2% simple interest each year at the end of the five years. How much interest will she earn?

User OhmzTech
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Final answer:

April will earn $60 in interest over five years on her $600 deposit in a savings account with a 2% simple interest rate.

Step-by-step explanation:

To solve the mathematical problem completely and understand how much interest April will earn on a $600 deposit at a 2% simple interest rate over five years, we can use the simple interest formula, which is:

Interest = principal × rate × time

Using April's scenario:

Principal is $600 (the initial amount deposited)

Annual interest rate is 2% (0.02 when converted to a decimal)

Time is 5 years

Now let's calculate:

Interest = $600 × 0.02 × 5

This yields:

Interest = $60

Therefore, April will earn $60 in interest over the course of five years with the given conditions.

User Baltekg
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