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Deandre deposits $500 into an account that pays simple interest at a rate of 4% per year. How much Interest will he be paid in the first 2 years?
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EspenDeandre deposits $500 into an account that pays simple interest at a rate of 4% per year. How much Interest will he be paid in the first 2 years?sdХ5? class=

Answer :

The Interest I paid on a deposited amount (principal) at a certain certain rate r over a period of time t is;

[tex]I=\frac{prt}{100}[/tex][tex]\begin{gathered} p=\text{ \$500} \\ r=4\text{ \%} \\ t=2\text{years} \end{gathered}[/tex][tex]\begin{gathered} I=\frac{500\times4\times2}{100} \\ I=40 \end{gathered}[/tex]

Hence, the interest paid after the first two years is $40

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