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8 October, 09:37

Kevin deposits $7000 into an account that pays simple interest at a rate of 2% per year. How much interest will he be paid in the first 3 years?

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  1. 8 October, 09:44
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    Use P*R*T/100, the formula for simple interest.

    P = $7000

    R = 2%

    T = 3 years

    $7000*2*3/100 = $4200

    So, your answer is $4200
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