Question

rafael deposits $5000 into an account that pays simple interest at a rate of 6% per year. how much interest will he be paid in the first 6 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

Here, \( P = \$5000 \), \( r = 6\% = 0.06 \) (converted to decimal), and \( t = 6 \) years.

Step3: Substitute values into formula

Substitute \( P = 5000 \), \( r = 0.06 \), and \( t = 6 \) into the formula: \( I = 5000 \times 0.06 \times 6 \).

Step4: Calculate the interest

First, calculate \( 5000 \times 0.06 = 300 \). Then, multiply by 6: \( 300 \times 6 = 1800 \).

Answer:

\( 1800 \)