Answer :
The Solution:
Simple Interest formula is given as below:
[tex]\begin{gathered} I=\frac{\text{PRT}}{100} \\ \text{Where} \\ P=\text{ Principal = \$6500} \\ R=\text{ Rate = 3.25\%} \\ T=\text{ Time = 4 years} \\ I=\text{simple interest=?} \end{gathered}[/tex]Substituting these values in the formula above, we get
[tex]I=\frac{6500\times3.25\times4}{100}=65\times3.25\times4=\text{ \$845.00}[/tex]Therefore, the interest earned is $845.00