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