Simple Interest is calculated using the formula:
[tex]I=\frac{PRT}{100}[/tex][tex]\begin{gathered} \text{where:} \\ ^{\prime}P^{\prime}\text{ represents the principal} \\ ^{\prime}R^{\prime}\text{ represents the rate} \\ ^{\prime}T^{\prime}\text{ represents the time} \end{gathered}[/tex]
From the question, we are provided with the following:
[tex]\begin{gathered} P=\text{ \$4,000} \\ R=3.4\text{ \%} \\ T=1\frac{1}{2}\text{ years} \end{gathered}[/tex]
Thus, we have:
[tex]\begin{gathered} I=\frac{4000\times3.4\times1.5}{100} \\ I=\text{ \$204} \end{gathered}[/tex]
Hence, the Simple interest earned is $204
