SOLUTION: How much simple interest will be earned by an account if $500 is invested at 4% annual interest for 1 year

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Question 98820: How much simple interest will be earned by an account if $500 is invested at 4% annual interest for 1 year
Found 2 solutions by stanbon, anjali_yamini:
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
How much simple interest will be earned by an account if $500 is invested at 4% annual interest for 1 year
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interest = 0.04*500 = $20
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Cheers,
Stan H.

Answer by anjali_yamini(27) About Me  (Show Source):
You can put this solution on YOUR website!

let :
simple interest = I
principal = P
rate of interest = R
time period = T
we know that I =(P*R*T)/T
SO, I = (500 * 4 * 1)/100
SO, I = 2000/100
SO, I = $20