Question #0da47

1 Answer
Mar 18, 2017

Answer:

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:

#color(blue)("Preamble")#

The % symbol is a bit like a unit of measurement but one that is worth #1/100." "#So 1.5% #->1.5xx1/100=1.5/100#

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
#color(blue)("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)#