Answer:
S.I = $2
Step-by-step explanation:
Given the following data;
Principal = $40
Interest rate = 5%
Time, t = 1
To find the simple interest;
Mathematically, simple interest is calculated using this formula;
[tex] S.I = \frac {PRT}{100} [/tex]
Where;
S.I is simple interest.
P is the principal.
R is the interest rate.
T is the time.
Substituting into the equation, we have;
[tex] S.I = \frac {40*5*1}{100} [/tex]
[tex] S.I = \frac {200}{100} [/tex]
S.I = $2
