Problema Solution
Abdul deposits $6000 into an account that pays simple interest at a rate of 4% per year. How much interest will he be paid in the first 4 years?
Answer provided by our tutors
Let
P = $6,000 the principal
r = 0.04 or 4% interest rare
t = 4 years the time
I = the interest earned
I = P*r*t
I = 6,000*0.04*4
I = $960
He will be pain $960 of interest.