Question

ivanna deposits $800 into an account that pays simple interest at a rate of 2% per year. how much interest will she be paid in the first 2 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 form), and $t$ is the time in years.

Step2: Identify values

Given $P = 800$, $r = 2\% = 0.02$, and $t = 2$.

Step3: Calculate interest

Substitute the values into the formula: $I = 800 \times 0.02 \times 2$. First, calculate $800 \times 0.02 = 16$. Then, $16 \times 2 = 32$.

Answer:

$32$