Final answer:
To calculate the interest, use the formula: Interest = Principal x Rate x Time. In this case, the principal is $700, the rate is 5%, and the time is 4 years. Therefore, he will be paid $140 in interest over the first 4 years.
Step-by-step explanation:
To calculate the interest, we can use the formula:
Interest = Principal x Rate x Time
In this case, the principal is $700, the rate is 5% (or 0.05), and the time is 4 years. Plugging in these values, we get:
Interest = $700 x 0.05 x 4 = $140
Therefore, he will be paid $140 in interest over the first 4 years.