shenskai
Answered

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

Verified Answer :

meerkat18

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.

calculista

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

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

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