Question

Sami's bank account earns 4% simple interest per year. If Sami deposits $500, how much simple interest will she earn in one year?

Answer 1

Explanation:

Answer 2

$20 simple interest.

Explanation:

The simple interest that Sami earns is 4% of her deposit since she is trying to find how much she will earn in one year (given that the interest rate is 4% per annum).

`\$500*4\%=\$20`

∴ Sami earns $20 simple interest in one year.

Hope this helps :)