Multiple choice

Alfred wants to invest $\$4,000$ at $6\%$ simple interest rate for $5$ years. How much interest will he receive?

  1. $240
  2. $480
  3. $720
  4. $960
  5. $1,200
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Simple interest = P * R * T / 100 = 4000 * 0.06 * 5 = 1200.

AI explanation

Use the simple interest formula: Simple Interest = (Principal multiplied by Rate multiplied by Time) / 100. Plugging in the given values results in (4000 multiplied by 6 multiplied by 5) / 100. The calculated interest is $1200.

Keep practicing — related questions