The formula for simple interest is I = prt, where I is the interest earned, p is the principal amount (the initial deposit), r is the interest rate, and t is the time (in years).
In this case, p = $800, r = 4% or 0.04 (as a decimal), and t = 5 years. Plugging these values into the formula, we get:
I = prt
I = $800 x 0.04 x 5
I = $160
Therefore, Teresa will be paid $160 in interest in the first 5 years.
Teresa deposits $800 into an account that pays simple interest at a rate 4% of per year. How much interest will she be paid in the first 5 years?
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