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Popular Word Problems >

Martina deposits 700 into an account that pays simple interest at a rate of 2% per year. How much interest will she be paid in the first 5 years?

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Solution

Martinadeposits700intoanaccountthatpayssimpleinterestatarateof2%peryear.Howmuchinterestwillshebepaidinthefirst5years?

Solution

Interest:70
Solution steps
Translate the problem into an equation:I=700⋅0.02⋅5
Simplify I=700⋅0.02⋅5
Interest:70

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