Question

percents
finding simple interest without a calculator
alan deposits $200 into an account that pays simple interest at a rate of 2% per year. how much interest will he be paid in the first 2 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

$P = \$200$, $r = 2\% = 0.02$, $t = 2$ years

Step3: Substitute values into formula

$I = 200 \times 0.02 \times 2$

Step4: Calculate the interest

$I = 200 \times 0.04 = 8$

Answer:

$\$8$