The interest for a month is $6.66 and 1 year is $80.
Explanation:
Simple Interest = Pnr/100
where,
⇒ P = principal
⇒ n = number of years
⇒ r = rate
Interest for 1 year,
P = $4,000, n = 1, r = 0.02
Interest = 4000[tex]\times[/tex] 1[tex]\times[/tex] 0.02
⇒ $80
Interest for 1 month,
⇒ divide the 1 year interest by 12,
⇒ 80/12
⇒ $6.66
