Question

reuben deposits $700 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 3 years?

Answer 1

Given that the account pays simple interest, the amount earned from Reuben's deposit of $700, at the rate of 5% p.a in 3 years will be:
I=PRT
P=$700
R=0.05
T=3 years
thus
I=700×0.05×3=$105