Question 5 of 9, Step 1 of 1 $4 / 9$ Correct What is the simple interest paid on $\$ 500$ at $4 \%$ for 2 years? Round your answer to the nearest cent. Answer

Step 1 ：The formula for simple interest is I = PRT, where P is the principal amount, R is the rate of interest, and T is the time in years. In this case, P = $500, R = 4% = 0.04, and T = 2 years. So, we need to calculate I = 500 * 0.04 * 2.

Step 2 ：Substitute the values into the formula: I = 500 * 0.04 * 2

Step 3 ：Calculate the result: I = 40.0

Step 4 ：Final Answer: The simple interest paid on $500 at 4% for 2 years is \(\boxed{40}\).