If the principle is $8,500 and the rate of interest is 4% (simple interest), what is the
amount of interest after one year?
A $9000
B $340
C $8840
D $240
To calculate the simple interest, we use the formula:
Interest = (Principal) x (Rate) x (Time)
where Time is in years.
Plugging in the given values, we get:
Interest = ($8,500) x (0.04) x (1) = $340
Therefore, the amount of interest after one year is $340.
So the correct answer is B) $340.