Question

What is the simple interest on a loan with a principal of $6,000, an interest rate of 7.39%, and a term of four years?

Answer 1

I = PRT

I = 6,000 * 0.0739 * 4

Answer 2

1773.6

Answer 3

[AI-generated answer — Explain Bot]

To calculate the simple interest on a loan, you need the principal amount, the interest rate, and the term.

Given:
Principal (P) = $6,000
Interest Rate (R) = 7.39% = 7.39/100 = 0.0739 (in decimal)
Term (T) = 4 years

The formula to calculate simple interest is:
Simple Interest (I) = (P * R * T)

Now, let's substitute the values into the formula:
I = (6,000 * 0.0739 * 4)

To calculate this, you can follow these steps manually:
1. Multiply the principal amount ($6,000) by the interest rate (0.0739):
(6,000 * 0.0739) = $443.40
2. Multiply the result by the term (4 years):
(443.40 * 4) = $1,773.60

Therefore, the simple interest on a loan with a principal of $6,000, an interest rate of 7.39%, and a term of four years is $1,773.60.