Question

Joe deposits $3000 into an account that pays simple interest at an annual rate of 6%. He does not make any more deposits. He makes no withdrawals until the end of 6 years when he withdraws all the money.

Answer 1

The interest is $1080 and the amount is $4080.

Explanation:

Find an interest by using the formula I=P*i*t, where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.

In this examplee P = $3000, i = 6% and t = 6 years, so

I=P*i*t

I=3000*0.06*6

I=1080

The interest is 1080, therefore the total amount is 4080.

Hope this helps!