morganv12
contestada

simple interest = P x r x t

If the principal is $200 and the interest rate is 4 percent, what is the simple interest earned in one year?


A. $8

B. $50

C. $800

Respuesta :

Answer:

$8

Explanation:

The formula of simple interest calculation is multiplying principal(P) with the rate(r) and time(t) elapsed. Simple interest generally yields lower than compound interest with the same rate.

In this question, the principal is $200, the rate is 4% and the time is 1 year. Then the interest you will earn will be:

simple interest = P x r x t

simple interest =$200 x 4% x 1

simple interest = $8