144k views
0 votes
Jane deposits $700 into an account that pays simple interest at a rate of 4% per year. How much interest will she be paid in the first

4 years?

User Halfwarp
by
8.6k points

1 Answer

5 votes

Answer:

Interest = $112

Explanation:

From the question, we know that the amount deposited (principal amount) is $700, and the interest rate is 4%. We are asked to calculate the interest amount.

In order to calculate the interest amount, we have to use the following formula:


\boxed{I = (PRT)/(100)},

where:

• I = simple interest

• P = principal amount

• R = simple interest rate

• T = time

Using the above formula and the given information, we can calculate the simple interest:

I =
(700 * 4 * \ 4)/(100)

= $112

Therefore, she will be paid $112 interest in 4 years.

User Flossfan
by
8.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories