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

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

Quizplus · Accepted Answer

Simple interest is calculated using the formula I = PRT, where P is the principal amount ($4,000), R is the rate (9% or 0.09), and T is the time (5 years). So, I = 4000 * 0.09 * 5 = $1,800.00.

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