Question

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

Answer 1

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.

Answer 2

`\$8`

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`