1. **State the problem:** Calculate the simple interest earned on a principal amount of $4700 at an interest rate of 3.5% over 1 year. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where $I$ is the interest, $P$ is the principal, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. 3. **Convert the interest rate to decimal:** $$r = 3.5\% = \frac{3.5}{100} = 0.035$$ 4. **Substitute the values into the formula:** $$I = 4700 \times 0.035 \times 1$$ 5. **Calculate the interest:** $$I = 4700 \times 0.035 = 164.5$$ 6. **Final answer:** The simple interest earned is **164.5**.