Question

Question #0da47

Answer 1

In this type of question you must state if simple interest or compound. If compound the time cycle for the interest calculation must also be stated.

After 4 years the interest paid is `4xx$6=$24`

Explanation:

`color(blue)("Preamble")`

The % symbol is a bit like a unit of measurement but one that is worth `1/100." "`So 1.5% `->1.5xx1/100=1.5/100`

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
`color(blue)("Answering the question")`

Assumption. The given percentage rate of 1.5% is annual and the interest type is simple.

Annually the interest is fixed at `1.5/100xx$400 = $6`

`color(green)("So after 4 years the interest paid is "4xx$6=$24)`