Question

To find simple interest you multiply the principal (in dollars) the interest rate (as a decimal) and the time in years the equation 24.00=400. 0.015.4 shows how to find the simple interest for a certain account after 4 years .

A.what is the interest rate as a percent

B.how much is the simple interest?

C.what is the principal?

Answer 1

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.