Rita deposits $600 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?

To calculate the interest Rita will earn in the first 5 years using simple interest, we use the formula:

\[
I = P \times r \times t
\]

Where:
- $I$ is the interest,
- $P$ is the principal amount ($600),
- $r$ is the annual interest rate (2% or 0.02),
- $t$ is the time in years (5 years).

Now, we substitute the given values into the formula:

\[
I = 600 \times 0.02 \times 5 = 60
\]

Rita will be paid **$60** in interest over the first 5 years.

Would you like more details or have any questions?

Here are 5 related questions to expand your understanding:
1. How would the interest change if the rate was 3% instead of 2%?
2. What would be the total amount in the account after 5 years including the interest?
3. How does simple interest differ from compound interest?
4. What if Rita withdrew the interest each year? How much would she receive annually?
5. How long would it take for Rita's investment to double at 2% simple interest?

**Tip**: Simple interest grows linearly over time, meaning the interest amount remains the same each period.

Rita deposits $600 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?

Discover how to calculate the simple interest earned on a $600 deposit over 5 years with a 2% annual interest rate. This problem uses the simple interest formula and demonstrates linear growth, ideal for students in Grades 6-8.

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