Question

Melissa deposits $5000 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 2 years?

Answer 1

$400 is the intrest she will pay in the first 2 yrs

Explanation:

principal (p) = 5000

time (t) = 2yrs

rate (r) = 4%

Now,

Intrest(I) = p×t×r/100

= 5000×2×4/100

= 400$