If David 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 6 years?

Answer 1

The answer will be $910.

The formula for simple interest is P(1+rt) where P is the principal, r is the rate of interest in decimal, and t is time. For your problem, P = $700, r = 0.05, and t = 6.

Substituting these values into their variables, you get: 700(1+0.05*6), which equals $910.