To answer this question, we need to use the formula for simple interest. This formula is as follows:

From the equation, we have:
• I is the earned (owed) interest.
,
• P is the principal (the invested money.)
,
• R is the rate of interest.
,
• T is the time period of the interest.
From the question, we have:
• P = $4,250
,
• R = 4% = 4/100 = 0.04
,
• T = 1 year
Therefore, we can obtain the interest as follows:

Hence, the owed interest will be $170 in a period of one year at a rate of 4%.