Scott deposits $400 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 = PRT
I = 400 * 0.06 * 2
I=48
48
To determine the amount of interest Scott will be paid in the first 2 years, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal (the initial amount) is $400, the rate is 6% (or 0.06 as a decimal), and the time is 2 years.
Plugging these values into the formula, we get:
Interest = $400 * 0.06 * 2
= $480
Therefore, Scott will be paid $480 in interest in the first 2 years.