Answer:
$225
Explanation:
To find the simple interest due, we use the formula:
[tex]\text{Simple Interest}=\frac{Principal\times Rate\times Time}{100}[/tex]In the given problem:
• The Principal = $1,250
,• Annual simple interest rate = 4.5%
,• Time = 4 years
Substitute into the formula:
[tex]\begin{gathered} SI=\frac{1250\times4.5\times4}{100} \\ =12.50\times\frac{9}{2}\times4 \\ =12.50\times9\times2 \\ =\$225 \end{gathered}[/tex]The simple interest due is $225.
