# Question 0da47

Mar 18, 2017

In this type of question you must state if simple interest or compound. If compound the time cycle for the interest calculation must also be stated.

After 4 years the interest paid is 4xx$6=$24

#### Explanation:

$\textcolor{b l u e}{\text{Preamble}}$

The % symbol is a bit like a unit of measurement but one that is worth $\frac{1}{100.} \text{ }$So 1.5% $\to 1.5 \times \frac{1}{100} = \frac{1.5}{100}$

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$\textcolor{b l u e}{\text{Answering the question}}$

Assumption. The given percentage rate of 1.5% is annual and the interest type is simple.

Annually the interest is fixed at 1.5/100xx$400 =$6

color(green)("So after 4 years the interest paid is "4xx$6=$24)#