Question

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

Answer 1

Answer:

$\ 8$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

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

$t=1\ year\\ P=\ 200\\r=0.04(4\%)$

substitute in the formula above

$I=200*0.04*1=\ 8$

Answer 2

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.