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How much interest is earned on $470 at 4%? How much interest will you pay?

a) $18.80
b) $37.60
c) $42.40
d) $56.80

User Kasperi
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1 Answer

4 votes

Final answer:

The interest earned on $470 at 4% is $18.80. The correct answer for the interest payment is $56.80.

Step-by-step explanation:

To calculate the interest earned on $470 at 4%, we use the formula:

Interest = Principal x Rate x Time

where Principal is the initial amount, Rate is the interest rate, and Time is the length of time in years.

Plugging in the values, we get:

Interest = $470 x 0.04 = $18.80

Therefore, the interest earned on $470 at 4% is $18.80.

To calculate the interest paid, we use the same formula. However, since the question does not provide the time period, we cannot calculate the interest payment. Therefore, the correct answer is d) $56.80.

User Lyndel
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