Question

Austin deposits $200 into an account that pays simple interest at a rate of 3% per year. How much interest will he be paid in the first 2 years?

Answer 1

Answer: $12

Explanation:

1% of 200 is 2. You need 3% so you times 2 by 3 which gives $6 for 1 year. In 2 years he will be paid 12.