Raya pays $111.2 for simple interest on the principal $1390.
Given that, Principal = $1390, Rate of interest = 2% and Time period = 4 years.
Simple interest is a method to calculate the amount of interest charged on a sum at a given rate and for a given period of time.
Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years.
Now, simple interest = (1390 × 2 × 4)/100
= $111.2
Therefore, Raya pays $111.2 for simple interest on the principal $1390.
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