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Alfred wants to invest $4,000 at 6% simple interest rate for 5 years. How much interest will he receive?

Alfred wants to invest $4,000 at 6% simple interest rate for 5 years. How much interest will he receive?

Simple interest is calculated by taking the Principal amount put down times the interest rate times the number of years the loan is for:

Interest = Principle * Rate * Years

So for your problem
Interest = 4,000 * (.06) * 5

Which happens to be $1,200

I agree with John P though. Do your homework. At least you have enough effort to seek help with the question, although I hope you aren't going to just write down the answer. If you do, please give Yahoo! Answers credit. Thanks.

C'mon Sam. This is an easy homework problem. Look in the chapter of your text that your teacher has been teaching from for the last few days. You might feel good solving it all by yourself.
Hint: 4000X.06 each year

$240.00

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