Choose the one alternative that best completes the statement or answers the question.
Solve the problem.
-If $13,000 is borrowed at 5.8% simple interest for 10 years, how much interest will be paid for the loan?
A) $9,845.47
B) $20,540.00
C) $7,540.00
D) $22,845.47

Question

Quizplus · Accepted Answer

Simple interest can be calculated using the formula $I = Prt$, where $I$ is the interest, $P$ is the principal amount (\$13,000), $r$ is the annual interest rate (5.8% or 0.058), and $t$ is the time in years (10). Plugging in the values: $I = 13000 \times 0.058 \times 10 = \$7,540.00$.

Choose the One Alternative That Best Completes the Statement or Answers