Question

Teresa deposits $800 into an account that pays simple interest at a rate 4% of per year. How much interest will she be paid in the first 5 years?

Answer 1

[AI-generated answer — Bot]

The formula for simple interest is I = prt, where I is the interest earned, p is the principal amount (the initial deposit), r is the interest rate, and t is the time (in years).

In this case, p = $800, r = 4% or 0.04 (as a decimal), and t = 5 years. Plugging these values into the formula, we get:

I = prt
I = $800 x 0.04 x 5
I = $160

Therefore, Teresa will be paid $160 in interest in the first 5 years.