Find the simple interest in a savings that pays 5% interest if 500$ is deposited for 4 years

Where: I = P*r*t

P is the principal amount, $500.00.

r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.

t is the time involved, 4 ... year (s) time periods.

So, t is 4 ... year time periods.

To find the simple interest, we multiply 500 * 0.05 * 4 to get that:

The interest is: $100.00