shenskai
contestada

If the principal is $200 and the interest rate is 4 percent, what is the simple interest earned in one year? Simple interest = P x r x t

Respuesta :

meerkat18
Given:
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 earned is $8.
calculista

Answer:

[tex]\$8[/tex]

Step-by-step explanation:

we know that

The simple interest formula is equal to

[tex]I=P(rt)[/tex]

where

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

[tex]t=1\ year\\ P=\$200\\r=0.04(4\%)[/tex]

substitute in the formula above

[tex]I=200*0.04*1=\$8[/tex]

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