Question

Find the simple interest earned in a savings account that pays 5% interest if $500 is deposited for 4 years.

Answer 1

Answer: ;Simple interest (I) = $100.0

Explanation:

Simple interest (I)

I = P x R x T

P = principal, R = rate and T = time

I = 500 x 5 x 4/100

I = 10,000/100

I = $100.0