Question

Rita deposits $800 into an account that pays simple interest at a rate of 3% per yearHow much interest will she be paid in the first 3 years?

Answer 1

Answer: $72

Explanation:

Simple interest (I) is calculated as Principal × Rate × Time.

From the question, Principal = $800

Rate =3% = 3/100= 0.03

Time =3 years

Slot in the values into the formula;

I = 800 x 0.03 x 3

I= $72

I hope this is clear