Question

susan deposits $8000 into an account that pays simple interest at a rate of 3% per year. how much interest will she be paid in the first 3 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

$P = \$8000$, $r = 0.03$ (3% converted to decimal), $t = 3$ years

Step3: Calculate the interest

$I = 8000 \times 0.03 \times 3$
$I = 8000 \times 0.09$
$I = 720$

Answer:

$\$720$