Question

Calculate the amount of interest on a $1,400 deposit at 4% interest for 5

years using the Simple Interest formula.
O $350
O $70
O $280
O $56

Answer 1

$280

Step-by-step Step-by-step explanation:

As per given question we have provided that :

• 
  `\purple\star` Principal = 1400
• 
  `\purple\star` Rate = 4%
• 
  `\purple\star` Time = 5 years

Here's the required formula to find the Simple Interest :

`{\longrightarrow{\pmb{\sf{S.I= (PRT)/(100)}}}}`

• 
  `\purple\star` S.I = Simple Interest
• 
  `\purple\star` P = Principal
• 
  `\purple\star` R = Rate
• 
  `\purple\star` T = Time

Substituting all the given values in the formula to find the Simple Interest :

`\begin{gathered}\qquad{\implies{\sf{S.I= (PRT)/(100)}}}\\\\\qquad{\implies{\sf{S.I= (P * R * T)/(100)}}}\\\\\qquad{\implies{\sf{S.I= (1400 * 4* 5)/(100)}}}\\\\\qquad{\implies{\sf{S.I= (5600 * 5)/(100)}}}\\\\ \qquad{\implies{\sf{S.I= \frac{56 \: \cancel{00}* 5}{1 \: \cancel{00}}}}}\\\\\qquad{\implies{\sf{S.I= 56 * 5}}} \\\\\qquad{\implies{\sf{S.I= \$280}}}\\\\\qquad\star\underline{\boxed{\sf{\pink{S.I= \$280}}}}\end{gathered}`

Hence, the simple interest is $280.

`\rule{300}{2.5}`