https://file.aiquickdraw.com/mathbot/file/1728185371079vbvptnt0.jpg

To solve the problem in the image, we are given the following information:

- **Principal (P):** \$880
- **Interest rate (r):** 4% (expressed as 0.04 in decimal)
- **Time (t):** 2 years
- **Simple interest formula:** $ I = P \times r \times t $

Now, let's calculate the simple interest owed:

\[
I = 880 \times 0.04 \times 2 = 880 \times 0.08 = 70.40
\]

So, the simple interest owed is **\$70.40**.

Would you like more details or have any questions?

Here are 5 related questions you might find interesting:
1. What is the total amount to be paid after 2 years, including interest?
2. How would the interest change if the interest rate was 5%?
3. What happens to the interest if the time was increased to 3 years?
4. How does compound interest differ from simple interest?
5. If the principal was doubled, what would the new interest be after 2 years?

**Tip:** Always convert percentage rates to decimal form by dividing by 100 before using them in calculations.

The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. P = $880, r = 4%, t = 2 years.

Learn how to calculate the simple interest on a principal of $880 borrowed at a 4% interest rate for 2 years. The formula used is I = P × r × t, leading to a total interest of $70.40.

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