Final answer:
The simple interest accrued on a principal of $7,500 at an annual rate of 2% over 4 years is $600.
Step-by-step explanation:
To calculate the simple interest, you can use the formula Interest = Principal × rate × time. In this scenario, the principal (p) is $7,500, the time (t) is 4 years, and the annual interest rate (r) is 2%. To find the interest, plug these values into the formula.
First, convert the interest rate from a percentage to a decimal by dividing by 100:
2% = 2/100 = 0.02
Now, use the formula:
Interest = $7,500 × 0.02 × 4
Multiplying these together gives you:
Interest = $7,500 × 0.08 = $600
So, the simple interest accrued over 4 years at a rate of 2% on a principal of $7,500 is $600.