Alan deposits $4000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 5 years?

Question

Ramon

Mathematics

5 April, 05:03

Alan deposits $4000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 5 years?

+5

Answers (1)

Know the Answer?

Clinton Bishop · Answer 1

Formula: i = p*r*t, where p is the initial amount, r is the interest rate as a decimal fraction, and t is the time in years. Then,

i = $4000 (0.05) (5) = $1000.