Question

A)What is the interest for an investment of $500 for 4 years at a rate of 2%?

Answer 1

$40

Step-by-step explanation:

The below formula can be used to find the simple interest;

`I=(P* r* t)/(100)`

where I = Interest

P = principal amount = $500

r = rate = 2%

t = time = 4 years

Let's go ahead and substitute the given values into the formula and solve for I;

`I=(500*4*2)/(100)=40`