Answer:
$800
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned:
<em>I = interest amount</em>
<em>P = principal amount</em>
<em>r = interest rate (decimal form)</em>
<em>t = time (years)</em>
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First, change 4% into its decimal form:
4% -> -> 0.04
Now, lets plug in the values into the equation:
The interest earned after 20 years is $800