Question

if the principal is $200 and the interest rate is 4 percent, what is the simple interest earned in one year?

Answer 1

Simple interest = [PTR]/100
where P is the principle, T is time and R is rate

Simple interest earned
= [(200)(1)(4)]/100
= $8

Answer 2

Principal = 200
interest rate = 4% per annum
term = 1 year

Simple Interest = Principal * interest rate * term
S.I. = 200 * 4% * 1
S.I = 8

Simple interest is $8