The total amount of simple interest calculated annually on a $4,000 note payable in 5 years at 9% is:
A) $1,800.00
B) $1,411.20
C) $2,154.60
D) $554.04

Question

Quizplus · Accepted Answer

Simple interest is calculated using the formula I = PRT, where I is the interest, P is the principal amount ($4,000), R is the rate (9% or 0.09), and T is the time in years (5). So, I = $4,000 * 0.09 * 5 = $1,800.00.

The Total Amount of Simple Interest Calculated Annually on a $4,000