Question

Lashonda deposits $500 into an account that pays simple interest at a rate of 6% per year. How much interest will she be paid in the first 3 years?

Answer 1

The amount of interest she will be paid in the first 3 years is;

`\text{ \$90}`

Step-by-step explanation:

Given that Lashonda deposits $500 into an account that pays simple interest at a rate of 6% per year. for the first 3 years;

`\begin{gathered} \text{ Principal P = \$500} \\ \text{rate r = 6\% = 0.06} \\ \text{time t = 3 years} \end{gathered}`

Recall the simple interest formula;

`i=P* r* t`

substituting the given values;

`\begin{gathered} i=500*0.06*3 \\ i=\text{ \$90} \end{gathered}`

Therefore, the amount of interest she will be paid in the first 3 years is;

`\text{ \$90}`