18. what would be the simple interest on a $3,000 loan at a 5% annual interest rate for 4 years? a. $500 b…

Explanation:

Step1: Identify the simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the percentage to a decimal

The annual interest rate $r = 5%=0.05$. The principal amount $P = 3000$ and the time $t = 4$ years.

Step3: Substitute values into the formula

$I=Prt=3000\times0.05\times4$.

Step4: Calculate the interest

$3000\times0.05\times4 = 3000\times0.2=600$.

Answer:

d. $600$