henry deposits $6000 into an account that pays simple interest at a rate of 3% per year. how much interest…

henry deposits $6000 into an account that pays simple interest at a rate of 3% per year. how much interest will he be paid in the first 3 years?

henry deposits $6000 into an account that pays simple interest at a rate of 3% per year. how much interest will he be paid in the first 3 years?

Answer

Explanation:

Step1: Identify the simple - interest formula

The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate to decimal

The annual interest rate $r = 3%=0.03$. The principal amount $P = 6000$ and the time $t = 3$ years.

Step3: Substitute values into the formula

$I=Prt=6000\times0.03\times3$.

Step4: Calculate the interest

$6000\times0.03\times3 = 540$.

Answer:

$540$