Question

joe deposits $7000 into an account that pays simple interest at a rate of 3% per year. how much interest will he be paid in the first 5 years?

Explanation:

Step1: Recall the 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 the values

Given that $P = 7000$, $r = 3\% = 0.03$ (converted to decimal), and $t = 5$ years.

Step3: Substitute the values into the formula

Substitute $P = 7000$, $r = 0.03$, and $t = 5$ into the formula $I = P \times r \times t$. So we have $I = 7000\times0.03\times5$.

Step4: Calculate the interest

First, calculate $7000\times0.03 = 210$. Then, multiply this result by $5$: $210\times5 = 1050$.

Answer:

$1050$