Question

Ahmad deposits $3000 into an account that pays simple interest at a rate of 3% per year. How much interest will he be paid in the first 4 years?

Answer 1

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Explanation:

Jahlan, simple interest means that interest is paid every year on the original $4000.

To find 2% of 4000, you multiply 4000(.02) = $80.

Since the interest is the same, 3(80) = $240.