Question

omar deposits $6000 into an account that pays simple interest at a rate of 5% per year. how much interest will he 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

Given \( P = \$6000 \), \( r = 5\% = 0.05 \), and \( t = 4 \) years.

Step3: Substitute into formula

Substitute the values into the formula: \( I = 6000 \times 0.05 \times 4 \).

Step4: Calculate

First, calculate \( 6000 \times 0.05 = 300 \). Then, \( 300 \times 4 = 1200 \).

Answer:

\$1200