ivanna deposits $800 into an account that pays simple interest at a rate of 2% per year. how much interest…

ivanna 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 2 years?

ivanna 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 2 years?

Answer

Answer:

$320$

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Identify values

Here, $P = 8000$ (the principal amount deposited), $r = 2% = 0.02$ (converted to decimal), and $t = 2$ (the number of years).

Step3: Calculate interest

Substitute the values into the formula: $I = 8000 \times 0.02 \times 2$. First, calculate $8000 \times 0.02 = 160$. Then, multiply by $2$: $160 \times 2 = 320$.