Answer:
The interest to be paid in the first year is $80
Step-by-step explanation:
Simple Interest = p×R×T / 100
WHERE p= principal R= rate and t=times in year
we are given principal (p) = $4000
Rate (R) = 2 and Time T=1
We can now proceed to plug in our values in the formula
Interest = P×R×T / 100
=$4000×2×1 / 100 (The two zeros at the denominator will cancel-out two zeros at the numerator, we will be left with just 0 zero at the numerator)
=40 × 2×1
=$80
Therefore the interest to be paid in the first year is $80
