Answer:
Interest paid to Laura is $320
The final amount is $2320
Step-by-step explanation:
Recall that the equation for simple interest is [tex]A=P(1+rt)[/tex] where [tex]A[/tex] is the final amount, [tex]P[/tex] is the principal/initial value, [tex]r[/tex] is the annual interest rate, and [tex]t[/tex] is the time in years.
[tex]A=P(1+rt)[/tex]
[tex]A=2000(1+0.04(4))[/tex]
[tex]A=2000(1.16)[/tex]
[tex]A=2320[/tex]
Therefore, if the final amount is $2320, then the interest paid to Laura is $2320 - $2000 = $320
