Problema Solution
Jim deposits $2000 into an account that pays simple interest at a rate of 4% per year? How much interest will be paid in the first 2 years?
Answer provided by our tutors
P = $2,000
r = 0.04 or 4%
t = 2 years
I = P*r*t
I = 2000*0.04*2
I = $160
Jim will get $160 interest after the first 2 years.