Question

Kira deposits 4,000 into an account that pays simple interest at a rate 5% per year how much interest will she be paid in the first 4 years

Answer 1

The formula to find the simple interest I for a deposit P with a simple interest annual rate of r during t years is:

`I=P\cdot t\cdot r`

In this problem, we have:

P = $4000

t = 4

r = 5% = 5/100

So, using those values in the formula, we obtain:

`I=\$4000\cdot4\cdot(5)/(100)=(\$4000)/(100)\cdot4\cdot5=\$40\cdot20=\$800`