The total amount of simple interest calculated annually on a $6,000 note payable for 3 years at 11% is
A) $1,980
B) $2,205
C) $6,600
D) $7,980

Question

Quizplus · Accepted Answer

The simple interest is calculated using the formula $I = PRT$, where $I$ is the interest, $P$ is the principal amount ($6,000), $R$ is the rate (11% or 0.11), and $T$ is the time in years (3). Thus, $I = 6000 \times 0.11 \times 3 = 1980$.

The Total Amount of Simple Interest Calculated Annually on a $6,000