Math Snap

STEP 1

1. Jose deposits $5000 into an account.
2. The account pays simple interest at a rate of $5\%$ per year.
3. We need to calculate the interest paid in the first 4 years.

STEP 2

1. Understand the formula for simple interest.
2. Identify the given values.
3. Substitute the values into the formula.
4. Calculate the interest.

STEP 3

Understand the formula for simple interest. The formula for simple interest is given by:
$$I = P \times r \times t$$ where $I$ is the interest, $P$ is the principal amount, $r$ is the rate of interest per year, and $t$ is the time in years.

STEP 4

Identify the given values from the problem:
- Principal amount, $P = 5000$
- Rate of interest, $r = 5\% = 0.05$ (as a decimal)
- Time, $t = 4$ years

STEP 5

Substitute the values into the simple interest formula:
$$I = 5000 \times 0.05 \times 4$$

Calculate the interest:
$$I = 5000 \times 0.05 \times 4 = 1000$$ Jose will be paid $\$ 1000$ in interest in the first 4 years.