Question

deposits \$700 into an account that pays simple interest at a rate of 6\% per year. How much interest will he be paid in the first 5 years?

Answer 1

$210

Explanation:

(I = A - P = $210.00)

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

A = 700(1 + (0.06 × 5)) = 910

A = $910.00