Question

Cody has 700$ in a savings account that pays 4% simple interest. What is the amount of simple interest he will earn in 2 years?

Answer 1

1% of 700 = 7
4% of 700 = 28
interest = $28

Answer 2

Simple Interest (SI) = Principal × Rate × Time
100
SI = 700$ × 4% × 2
100
SI = 7 × 4 × 2
SI = 56
therefore the simple interest is 56$