Question

Jim deposits $4000 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? 12PTS

Answer 1

I = p * r * t
I = 4000(.03)(3)
I= $360

Answer 2

I'll use the simplest way:

Money = $4000
Rate of Interest: 3% per year

So, how much does he get per year? Here: 4000 x (3/100) = $120 per year.

So how much does he get paid in 3 years? Here: 120x3 = $360 in 3 years.

Or you can say that he got $4,360 from $4,000 in a span of 3 years with 3% interest.

Hope I helped a bit.