SOLUTION: Ann deposits $6000 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first 2 years?

Question 1085411: Ann deposits $6000 into an account that pays simple interest at a rate of
4% per year. How much interest will she be paid in the first 2 years?
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po(1=r)^t
=6000*(1.04)^2=6489.60
$489.60, after subtracting the initial principal.
Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!

Ann deposits $6000 into an account that pays simple interest at a rate of
4% per year. How much interest will she be paid in the first 2 years?

SIMPLE INTEREST = PTR, where:
P = Principal or amount deposited
T = Time, in years
R = Annual Interest rate
Multiply it yourself. You should get
If the money is left in the account for the full term (2 years), then the interest will be COMPOUNDED, and will be more.
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