Tom deposits
$800
into an account that pays simple interest at a rate of
6%
per year. How much interest will he be paid in the first
2
years?
I = P*r*t = 800*0.06*2 =
22.90
To calculate the interest Tom will be paid in the first 2 years, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
Where:
Principal = $800 (the initial deposit)
Rate = 6% per year (as a decimal, 0.06)
Time = 2 years
To find the interest, we can substitute these values into the formula:
Interest = $800 * 0.06 * 2
Calculating this:
Interest = $96
So, Tom will be paid $96 in interest in the first 2 years.