Question

How much interest is earned on a principal of $671.37 invested at an interest rate

of 4% for four years?

Answer 1

$26.8548

Explanation:

Answer 2

The interest earned on a principle of $671.37 at an interest rate of 4% for four years is $ 107.42.

SOLUTION:

Given, p = $671.37, R = 4%, t = 4.

We need to find the simple interest for the above given values of amount, rate and years.

We know that

`Simple Interest $=\left((p * r * t)/(100)\right)$`

where, p = principal amount ; r = rate of interest ; t = number of years

By substituting the values we get,

`=\left((671.37 * 4 * 4)/(100)\right) \\\\$=\left((2685.48 * 4)/(100)\right) \\\\$=\left((2685.48)/(25)\right)$$=107.4192$`

Simple interest is $ 107.42 approximately.

Hence, the interest earned on a principle of $671.37 at an interest rate of 4% for four years is $ 107.42.