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14 April, 19:54

Reuben deposits $700 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 3 years?

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  1. 14 April, 20:36
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    Given that the account pays simple interest, the amount earned from Reuben's deposit of $700, at the rate of 5% p. a in 3 years will be:

    I=PRT

    P=$700

    R=0.05

    T=3 years

    thus

    I=700*0.05*3=$105
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