Answer:
The formula for simple interest is:
I = P * r * t
Where:
I = Interest
P = Principal amount
r = Rate of interest per year
t = Time period
Given:
P = $1000
r = 4 years
t = $200
Substituting the values in the formula, we get:
I = $1000 * 0.04 * 4
I = $160
To express this as a fraction of $200, we can write:
$160/$1000
This fraction can be simplified by dividing both numerator and denominator by 20:
$8/$50
This fraction can be further simplified by dividing both numerator and denominator by 2:
$4/$25
This fraction, when expressed as a decimal, is:
0.16