Question

Jose deposits S300 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 3 years?

Answer 1

$54

Explanation:

A = P(1 + rt)

300(1 + (0.06 × 3)) = 354

Answer 2

$54

Explanation:

300 times 0.06 times 3

0.06 times 3 = 0.18

300 times 0.18 = 54

The simple interest is $54