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
The formula for simple interest is:
Interest = Principal x Rate x Time
In this case, the principal is $8,500, the rate is 4%, and the time is one year. Plugging in these values:
Interest = $8,500 x 0.04 x 1 year
Interest = $340
Therefore, the answer is option B) $340.