Answer:
So profit will be $140 and he will have a total of $640 after 4 years
Step-by-step explanation:
We know the formula for Interest rate i.e.
A = PRT ............(i)
here in this equation is P is the money invested
R is the rate at which it is invested
T is the time for which money is invested
A is the amount we get after that period of time
Now in the question we are given
R= 7%
P=$500
T=4 years
Now Putting these values in equation (i)
A=PRT
Putting values gives
A = (500)*(7%)*(4)
A[tex]=500 * \frac{7}{100}*4[/tex]
A[tex]=\frac{3500}{100}*4[/tex]
A=35*4
A=$140
So he will gain a profit of $140
Total money he will have after 4 years = 500 + 140
=$640
So profit will be $140 and he will have a total of $640 after 4 years
