Simple interest calculates interest on initial amount only. The investment by Hannah was : Option A: $4800
<h3>How to calculate simple interest amount if rate of interest is R% annually?</h3>
Suppose that the initial amount of investment is P
And the rate of simple interest is R% annually,
And the time of investment is T years.
Then, the amount of simple interest is calculated as:
![I = \dfrac{P \times R \times T}{100}](https://tex.z-dn.net/?f=I%20%3D%20%5Cdfrac%7BP%20%5Ctimes%20R%20%5Ctimes%20T%7D%7B100%7D)
For the given case, let the initial investment Hannah made was of $P
Then, the time of investment is T = 8 years, R% = 4%, and given that Hannah earned interest I = $1536
Putting values in the above formula, we get;
![I = \dfrac{P \times R \times T}{100}\\\\1536 = \dfrac{P \times 8 \times 4}{100}\\\\P = \dfrac{153600}{32} = 4800](https://tex.z-dn.net/?f=I%20%3D%20%5Cdfrac%7BP%20%5Ctimes%20R%20%5Ctimes%20T%7D%7B100%7D%5C%5C%5C%5C1536%20%3D%20%5Cdfrac%7BP%20%5Ctimes%208%20%5Ctimes%204%7D%7B100%7D%5C%5C%5C%5CP%20%3D%20%5Cdfrac%7B153600%7D%7B32%7D%20%3D%204800)
Thus,
The investment by Hannah was : Option A: $4800
Learn more about simple interest here:
brainly.com/question/5319581