Answer:
$40
Explanation:
The below formula can be used to find the simple interest;
[tex]I=\frac{P\times r\times t}{100}[/tex]where I = Interest
P = principal amount = $500
r = rate = 2%
t = time = 4 years
Let's go ahead and substitute the given values into the formula and solve for I;
[tex]I=\frac{500\times4\times2}{100}=40[/tex]