Donna deposits #$800# into an account that pays simple interest at a rate of #2%# per year. How much interest will she be paid in the first #5# years?

1 Answer
Nov 29, 2016

Answer:

Donna will be paid #$80# as interest.

Explanation:

#SI=(PxxRxxT)/100#

Applying the formula for simple interest we get:

#SI=(800xx2xx5)/100#

#SI=(8cancel(00)xx2xx5)/(1cancel(00))#

#SI=8xx2xx5#

#SI=80#