Question

heather deposits $5000 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?

Explanation:

Step1: Recall simple interest formula

The simple interest formula is $I = P \times r \times t$, where $P$ is principal, $r$ is annual interest rate, $t$ is time in years.

Step2: Identify given values

$P = \$5000$, $r = 2\% = 0.02$, $t = 5$ years

Step3: Calculate the interest

Substitute values into the formula:
$I = 5000 \times 0.02 \times 5$
$I = 100 \times 5$
$I = 500$

Answer:

$\$500$