Simple Interest Simple interest is the money paid or earned only on the principal (the original...

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Simple Interest Simple interest is the money paid or earned only on the principal (the original amount of money that is borrowed or deposited). The formula used to calculate simple interest is 1 = Prt where / is the simple interest, P is the principal, ris the annual interest rate (in decimal form), and tis the time (in years). a. Calculate the interest earned on a $500 deposit after 4 years at an annual simple interest rate of 4%. b. You borrow $3000 at an 8% annual simple interest rate. What is the amount needed to pay off the entire loan after 2 years? Simple Interest Simple interest is the money paid or earned only on the principal (the original amount of money that is borrowed or deposited). The formula used to calculate simple interest is 1 = Prt where / is the simple interest, P is the principal, ris the annual interest rate (in decimal form), and tis the time (in years). a. Calculate the interest earned on a $500 deposit after 4 years at an annual simple interest rate of 4%. b. You borrow $3000 at an 8% annual simple interest rate. What is the amount needed to pay off the entire loan after 2 years?