Question

jim deposit $4000 into an account that pay simple interest at a rate 2% per year how much interest will he be paid in the 3 years

Answer 1

Explanation

Simple interest is:

`s=P* r* t`

Where P is the principal amount, r is the rate of the interest per year and t is the number of years.

In this problem we have P = $4000, r = 0.02 and t = 3

The interest after 3 years will be:

`s=4000*0.02*3=240`

Answer

Jim will be paid $240 of interest after 3 years