Question

Teresa deposits $800 into an account that pays simple interest at a rate of 2% per year. How much interest will she be paid in the first 2 years?

Answer 1

I'll setup the problem and you can do the computation

Explanation:

The formula for simple interest:

I = P*r*t

I = interest

P = deposit

r = interest rate per period

t = number of periods

P = $800

r = 0.02

t = 2

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