Question

Jane deposits $700 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first

4 years?

Answer 1

Interest = $112

Explanation:

From the question, we know that the amount deposited (principal amount) is $700, and the interest rate is 4%. We are asked to calculate the interest amount.

In order to calculate the interest amount, we have to use the following formula:

`\boxed{I = (PRT)/(100)}`,

where:

• I = simple interest

• P = principal amount

• R = simple interest rate

• T = time

Using the above formula and the given information, we can calculate the simple interest:

I =
`(700 * 4 * \ 4)/(100)`

= $112

Therefore, she will be paid $112 interest in 4 years.