Lamar deposits 5000 into an account that pays interest at 4% per year. How much interest wilk he be paid in the first 3 years
5000 (1 + .04)^3
amount of interest paid
= 5000 (1 + .04)^3 - 5000
To find out how much interest Lamar will be paid in the first 3 years, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Given that Lamar deposits $5000 into an account that pays interest at 4% per year, we can plug in the values into the formula:
Principal = $5000
Rate = 4% = 0.04 (in decimal form)
Time = 3 years
Interest = $5000 * 0.04 * 3
To calculate the amount, we can multiply the values together:
Interest = $600
Therefore, Lamar will be paid $600 in interest in the first 3 years.