Question

Kaitlin deposits 500 into an account that pays simple interest at a rate of 2% per year. How much interest will she be paid in the first 2 years?

Answer 1

Step-by-step explanation:

To calculate the interest Kaitlin will be paid in the first 2 years, we can use the formula for simple interest:

Interest = Principal * Rate * Time

Given:

Principal (P) = $500

Rate (R) = 2% per year (2/100 = 0.02)

Time (T) = 2 years

Substituting these values into the formula, we can calculate the interest:

Interest = 500 * 0.02 * 2

= $20

Therefore, Kaitlin will be paid $20 in interest in the first 2 years.