#### Explanation:

For simple interest, $I = P r t$ where $I$ is the simple interest, $P$ is the principal, $r$ is the rate (in percent) and $t$ is the time (in years).

Plugging in $4265 for $P$, $0.07$for $r$, and $4$for $t$: $I = 4625 \cdot 0.07 \cdot 4$$I = 323.75 \cdot 4$$I = 1295\$