Question

What is the interest earned on $500 invested for 7 years in an account that earns simple interest at a rate of 4% per year?

Answer 1

The interest earned is

$

140

.

Explanation:

Using the formula

S

I

=

P

×

R

×

T

100

, we write:

S

I

=

500

×

4

×

7

100

S

I

=

5

00

×

4

×

7

1

00

S

I

=

5

×

4

×

7

S

I

=

140