Questions: Dante deposits 400 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 2 years?

Transcript text: Dante deposits $\$ 400$ into an account that pays simple interest at a rate of $5 \%$ per year. How much interest will he be paid in the first 2 years?

Solution

Solution Steps

Step 1: Identify the Formula for Simple Interest

The formula for calculating simple interest is given by:

\[ I = P \times r \times t \]

where:

$ I $ is the interest,
$ P $ is the principal amount,
$ r $ is the rate of interest per year (in decimal form),
$ t $ is the time in years.

Step 2: Substitute the Given Values

In this problem, we are given:

$ P = 400 $ dollars,
$ r = 5\% = 0.05 $,
$ t = 2 $ years.

Substitute these values into the formula:

\[ I = 400 \times 0.05 \times 2 \]

Step 3: Calculate the Interest

Perform the multiplication:

\[ I = 400 \times 0.05 \times 2 = 40 \]

Final Answer

The interest Dante will be paid in the first 2 years is $\boxed{40}$ dollars.

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Questions: Dante deposits 400 into an account that pays simple interest at a rate of 5% per year. How much interest will he be paid in the first 2 years?

Solution

Solution Steps

Final Answer

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