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

Answer:

$20 simple interest.

Step-by-step 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).  

$\ 500\times4\%=\ 20$

∴ Sami earns $20 simple interest in one year.

Hope this helps :)