To calculate the simple interest earned on Diego's deposit, we can use the simple interest formula:
\[ \text{Interest} = P \times r \times t \]
Where:
- \( P \) = principal amount (initial deposit)
- \( r \) = annual interest rate (as a decimal)
- \( t \) = time in years
Given:
- \( P = 10,000 \)
- \( r = 6% = 0.06 \)
- \( t = 4 \)
Now plug in the values:
\[ \text{Interest} = 10,000 \times 0.06 \times 4 \]
Calculating this step-by-step:
- Calculate \( 0.06 \times 4 = 0.24 \)
- Then multiply by \( 10,000 \):
\[ \text{Interest} = 10,000 \times 0.24 = 2,400 \]
Thus, the amount of interest Diego earned after four years is $2,400.