a bank published a special loan with a simple interest rate of 4.5%. if the loan for $25,000 is repaid after…

a bank published a special loan with a simple interest rate of 4.5%. if the loan for $25,000 is repaid after 4 years, how much interest was paid?\n$1,125\n$4,500\n$26,125\n$29,500

a bank published a special loan with a simple interest rate of 4.5%. if the loan for $25,000 is repaid after 4 years, how much interest was paid?\n$1,125\n$4,500\n$26,125\n$29,500

Answer

Answer:

B. $4,500

Explanation:

Step1: Identify formula

$I = Prt$, where $I$ is interest, $P$ is principal, $r$ is rate, $t$ is time.

Step2: Convert rate to decimal

$r=4.5%=0.045$

Step3: Substitute values

$P = 25000$, $r = 0.045$, $t = 4$ into $I=Prt$. $I=25000\times0.045\times4$

Step4: Calculate result

$I = 25000\times0.18=$4500$