Question

donna deposits $300 into an account that pays simple interest at a rate of 6% per year. how much interest will she be paid in the first 4 years?

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal amount, \( r \) is the annual interest rate (in decimal), and \( t \) is the time in years.

Step2: Identify values

Here, \( P = \$300 \), \( r = 6\% = 0.06 \) (converted to decimal), and \( t = 4 \) years.

Step3: Substitute values into formula

Substitute \( P = 300 \), \( r = 0.06 \), and \( t = 4 \) into the formula: \( I = 300 \times 0.06 \times 4 \).

Step4: Calculate the interest

First, calculate \( 300 \times 0.06 = 18 \). Then, multiply by 4: \( 18 \times 4 = 72 \).

Answer:

\$72