To find simple interest, you multiply the principal (in dollars), the interest rate (as a decimal), and the time in years.
1 answer:
Here we have $400 originally and it is invested at an interest rate of 0.015 for 4 years.
Therefore we can say that the interest rate is 0.015 * 4 * 100 = 6% for the 4 years.
Simple interest is 6% / 4 = 1.5%.
And the principal is $400.
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Step-by-step explanation:
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Hope this helps
