Answer:
$16
Step-by-step explanation:
Simple interest is based on the principal amount of a loan or deposit, whereas compound interest is based on the principal amount and the interest that accumulates on it in every period.
Simple Interest = P x r x n
where P = Principal amount, r = Annual interest rate, n = Term of loan, in years
2% = 2 ÷ 100 = 0.02 so r = 0.02
Therefore,
Simple Interest = 400 x 0.02 x 2 = 16
So she will be paid $16 in the first two years.
Answer:
Mary paid interest $16 in the first 2 years.
Step-by-step explanation:
As per given question we have provided that :
Here's the required formula to find the Principal :
[tex]{\longrightarrow{\pmb{\tt{I= \dfrac{PRT}{100}}}}}[/tex]
Substituting all the given values in the formula to find the Principal :
[tex]{\longmapsto{\sf{Interest= \dfrac{PRT}{100}}}}[/tex]
[tex]{\longmapsto{\sf{Interest= \dfrac{P \times R \times T}{100}}}}[/tex]
[tex]{\longmapsto{\sf{Interest= \dfrac{400 \times 2 \times 2}{100}}}}[/tex]
[tex]{\longmapsto{\sf{Interest= \dfrac{4 \cancel{00} \times 2 \times 2}{1 \cancel{00}}}}}[/tex]
[tex]{\longmapsto{\sf{Interest= 4 \times 2 \times 2}}}[/tex]
[tex]{\longmapsto{\sf{Interest= 8 \times 2}}}[/tex]
[tex]{\longmapsto{\sf{Interest = \$16}}}[/tex]
[tex]\star{\underline{\boxed{\sf{\purple{Interest = \$16}}}}}[/tex]
Hence, the interest is $16.
[tex]\rule{300}{2.5}[/tex]
