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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

Kira deposits 4,000 into an account that pays simple interest at a rate 5% per year-example-1

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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

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