jerry borrowed $4,000 for 5 years at 6% simple interest rate. how much interest is that? $1,500 $1,200…

jerry borrowed $4,000 for 5 years at 6% simple interest rate. how much interest is that? $1,500 $1,200 $1,000 $800

jerry borrowed $4,000 for 5 years at 6% simple interest rate. how much interest is that? $1,500 $1,200 $1,000 $800

Answer

Explanation:

Step1: Identify simple - interest formula

The formula for simple interest 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 interest rate to decimal

The annual interest rate $r = 6%=0.06$. The principal amount $P = 4000$ and the time $t = 5$ years.

Step3: Substitute values into the formula

$I=Prt=4000\times0.06\times5$. $I = 4000\times0.3$. $I = 1200$.

Answer:

B. $1,200