Alonzo deposits $800 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 3 years?

Answer 1

Simple interest means that interest is paid every year on the original $800.

 

To find 6% of 800, you multiply 800(.06) = $48.

 

Since the interest is the same, 3(48) = $144.