David deposits $400 into an account that pays simple interest at a rate of 3% per year. How much interest will he be paid in the first 2 years?

Question

i need help figuring out this math problem can u pls help me??????????????????????

Answer 1

You want to calculate the interest on $400 at 3% interest per year after 2 year(s).
The formula we'll use for this is the simple interest formula, or:


Where:
P is the principal amount, $400.00.
r is the interest rate, 3% per year, or in decimal form, 3/100=0.03.
t is the time involved, 2....year(s) time periods.
So, t is 2....year time periods.
To find the simple interest, we multiply 400 × 0.03 × 2 to get that:

The interest is: $24.00