Heather deposits $3000 into an account that pays simple interest at a rate of 2% per year. How much interest will she be paid in the first 3 years?
I = PRT
3,000 * 0.02 * 3 = ?
180
64
180
To calculate the interest Heather will be paid in the first 3 years, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal (the initial amount Heather deposited) is $3000, the rate is 2% per year, and the time is 3 years.
First, let's convert the rate from a percentage to a decimal. The rate is 2%, so we divide it by 100 to get 0.02.
Now we can plug in the values into the formula:
Interest = $3000 * 0.02 * 3
Calculating this, we get:
Interest = $180
Therefore, Heather will be paid $180 in interest in the first 3 years.