Problema Solution
Deon deposits $2000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 4 years
Answer provided by our tutors
P = $2000 the principal
r = 0.05 or 5% the annual rate
t = 4 years
I = the interest
I = P*r*t
I = 2000*0.05*4
I = $400
there will be $400 interest paid in the first 4 years.