emilyap2023 emilyap2023

02-12-2017
Mathematics

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Alan deposits $4000 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 5 years?

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altavistard altavistard

02-12-2017

Formula: i = p*r*t, where p is the initial amount, r is the interest rate as a decimal fraction, and t is the time in years. Then,

i = $4000(0.05)(5) = $1000.

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