Question

Pablo deposits $5000 into an account that pays simple interest at a rate of 3% per year. How much interest will he be paid in the first 6years?

Answer 1

$5900

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula: A = P(1 + rt)

• P is principle amount
• r is rate
• t is time (in years)

Explanation:

Step 1: Define

Identify variables

P = 5000

r = 3% = 0.03

t = 6

Step 2: Find Interest

1. Substitute in variables [Simple Interest Rate Formula]: A = 5000(1 + 0.03 · 6)
2. (Parenthesis) Multiply: A = 5000(1 + 0.18)
3. (Parenthesis) Add: A = 5000(1.18)
4. Multiply: A = 5900