If the principle is $4,000 and the rate of interest is 8% (simple interest), what is the
amount of interest after one year?
If the principle is $4,000 and the rate of interest is 8% (simple interest), what is the
amount of interest after one year?
$320
$5000
$4320
$3200
The amount of interest after one year would be $320.
To calculate simple interest, we use the formula:
Interest = (Principal * Rate * Time) / 100
In this case, the principal is $4,000, the rate is 8%, and the time is 1 year.
Plugging in these values into the formula, we get:
Interest = (4,000 * 8 * 1) / 100 = $320
Therefore, the amount of interest after one year is $320.