Question

Chris deposits $6000 into an account that pays simple interest at a rate of 2% per year.

How much interest will he be paid in the first 3 years?

Answer 1

$360

Explanation:

You want the amount of simple interest earned by $6000 in 3 years at the rate of 2%.

Interest

The simple interest formula is ...

I = Prt

where P is the principal invested at rate r for t years.

Application

$6000 invested at 2% for 3 years earns ...

I = $6000·0.02·3 = $360

Chris will be paid $360 in interest in the first 3 years.