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

Mathematics

Ignacio

14 November, 17:31

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?

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Marquis · 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.