Calculate the simple interest on a $4,000 loan at an interest rate of 8 percent after 2 years.(1 point)
Responses
$640
$640
$320
$320
$6,400
$6,400
$64,000
To calculate the simple interest, we can use the formula:
Simple Interest = Principal * Interest Rate * Time
Here,
Principal = $4,000
Interest Rate = 8% = 0.08
Time = 2 years
Plugging in the values into the formula:
Simple Interest = $4,000 * 0.08 * 2
Simple Interest = $640
Therefore, the simple interest on a $4,000 loan at an interest rate of 8 percent after 2 years is $640.