Question

if $7,000 were invested in a bond with a simple interest rate of 4.5%, how much interest would be earned after 4 years?
$?
hint: i = prt

Explanation:

Step1: Identify values for P, R, T

Principal \( P = 7000 \), Rate \( R = 4.5\% = 0.045 \), Time \( T = 4 \) years.

Step2: Apply simple interest formula \( I = PRT \)

Substitute values: \( I = 7000 \times 0.045 \times 4 \).
Calculate \( 7000 \times 0.045 = 315 \), then \( 315 \times 4 = 1260 \).

Answer:

\( \$1260 \)