Answer:
$280
Step-by-step explanation:
According to the problem, calculation of the given data are as follows:
Principal amount (P) = $1,000
Rate of interest (r) = 7%
Time period (t) = 4 years
Here we use simple interest formula to calculate interest after 4 years.
I = P × r × t
By putting the value, we get
I = $1,000 × 7% × 4
= $70 × 4
= $280
