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Kira deposits 4,000 into an account that pays simple interest at a rate 5% per year how much interest will she be paid in the first 4 years

Kira deposits 4000 into an account that pays simple interest at a rate 5 per year how much interest will she be paid in the first 4 years class=

Respuesta :

The formula to find the simple interest I for a deposit P with a simple interest annual rate of r during t years is:

[tex]I=P\cdot t\cdot r[/tex]

In this problem, we have:

P = $4000

t = 4

r = 5% = 5/100

So, using those values in the formula, we obtain:

[tex]I=\$4000\cdot4\cdot\frac{5}{100}=\frac{\$4000}{100}\cdot4\cdot5=\$40\cdot20=\$800[/tex]

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