Question

$3,700 for 2% for 4 yearswhat is the simple interest?what is the total amount?

Answer 1

`\begin{gathered} \text{simple interest = \$296} \\ \text{Amount = \$3,996} \end{gathered}`

Here, we want to get the amount on the simple interest

Mathematically, this is the sum of the amount deposited and the interest accurred

For the interest, we use the formula for simple interest as follows;

`\begin{gathered} I\text{ = }(PRT)/(100) \\ \\ P\text{ is the amount deposited = \$3,700} \\ R\text{ is the rate which is 2\%} \\ T\text{ is time which is 4 years} \\ \text{Substituting these values;} \\ I\text{ = }(3700*2*4)/(100)\text{ = \$296} \end{gathered}`

So, we simply add this to the principal to get the amount

`\begin{gathered} \text{Amount = Principal + Interest} \\ =\text{ \$3,700 + \$296 = \$3,996} \end{gathered}`