Answer:
$40
Step-by-step explanation:
You are going to want to use the simple interest formula for this.
[tex]I=Prt[/tex]
I = interest amount
P = principal amount
r = interest rate (decimal form)
t = time
First, change 2% into its decimal form:
2% -> [tex]\frac{2}{100}[/tex] -> 0.02
Next, plug in the values into the equation as shown below:
[tex]I=500(0.02)(4)[/tex]
[tex]I=40[/tex]
Keisha earned $40 worth of interest after the first 4 years.
