Find the interest paid on a loan of $5410 at 7% annual simple interest for 2.4 years.
A) $1287.58
B) $908.88
C) $478.36
D) $871.01

Question

Quizplus · Accepted Answer

To find the interest, we use the formula:

I = P * r * t

where I is the interest, P is the principal (the amount borrowed), r is the annual interest rate (as a decimal), and t is the time (in years).

Plugging in the given values, we get:

I = 5410 * 0.07 * 2.4
  = 908.88
  
Therefore, the interest paid on the loan is $908.88, which corresponds to choice B.

Find the Interest Paid on a Loan of $5410 at 7