Answer:
$800
Step-by-step explanation:
You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned:
[tex]I = Prt[/tex]
I = interest amount
P = principal amount
r = interest rate (decimal form)
t = time (years)
First, change 4% into its decimal form:
4% -> [tex]\frac{4}{100}[/tex] -> 0.04
Now, lets plug in the values into the equation:
[tex]I=1,000(0.04)(20)[/tex]
[tex]I=800[/tex]
The interest earned after 20 years is $800
