how do i solve this

Question

Ali deposits 6000 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 5 year?

Answer 1

Hi,

Since this is simple interest, you do not need to find the compounding effect of interest.

6000 * .06 = 360 (interest to be paid annually)

360 * 5 = 1800 (total interest paid over the course of the five years)