For a deposit of $1000 to earn 4 percent interest annually, the interest earned is $40 per year.

Name: For a deposit of $1000 to earn 4 percent interest annually, the interest earned is $40 per year.
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Question

Quizplus · Accepted Answer

The formula to calculate simple interest is: 
Interest = (Principal x Rate x Time) / 100 
Here, Principal = $1000, Rate = 4%, Time = 1 year 
So, Interest = (1000 x 4 x 1) / 100 = $40 
Hence, the statement is true.

For a Deposit of $1000 to Earn 4 Percent Interest