Tom deposits $800 into an account that pays simple interest at a rate of 2℅ per year. How much interest will he be paid in the first 2 years
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He will be paid $32. If you use a calculator or just divide by hand, 2% of 800 is 16. Then just multiply by 2.
I = Po*r*t = 800*0.02*2 = $32.
1 answer