Question

salma deposits $700 into an account that pays simple interest at a rate of 5% per year. how much interest will she be paid in the first 6 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

$P = \$700$, $r = 5\% = 0.05$, $t = 5$ years

Step3: Calculate the interest

$I = 700 \times 0.05 \times 5$
$I = 700 \times 0.25$
$I = 175$

Answer:

$\$175$