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 `SI=(PxxRxxT)/100`, we write:

`SI=(500xx4xx7)/100`

`SI=(5cancel00xx4xx7)/(1cancel00)`

`SI=5xx4xx7`

`SI=140`