SOLUTION: I deposit $500. into an account that pays simple interest at a rate of 6% per year. How much interest will be paid in the first 2 years?

Question 659123: I deposit $500. into an account that pays simple interest at a rate of 6% per year. How much interest will be paid in the first 2 years?
Found 2 solutions by reviewermath, colliefan:
Answer by reviewermath(1029) (Show Source): You can put this solution on YOUR website!
I = Prt
= $500(0.06)(2)
= $60
Answer by colliefan(242) (Show Source): You can put this solution on YOUR website!
Interest amount = interest rate * balance in the account
First year:
I=$500*6%=$30
Second year:
I=530*6%=$31.80
The second year you will get interest on the amount that the account increased with the first year's interest as well.
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