Enrique borrowed $3600 to put a down payment on a motorcycle. The loan had a simple interest rate of 8% for 2 years. Use the formula I = prt to find the amount of interest he will pay on the loan. I = interest; p = principal; r = rate (expressed as a decimal 0.08); t = time in years.
A) $576
B) $288
C) $4176
D) $2880

Question

Quizplus · Accepted Answer

Using the formula I = prt, we have I = 3600 x 0.08 x 2 = $576. Therefore, the answer is A).

Enrique Borrowed $3600 to Put a Down Payment on a Motorcycle