According to the formula for simple interest, if you borrow $2,000 for one year at a simple interest rate of 12 percent, the interest charge you must pay is:
A) $120
B) $100
C) $60
D) $220
E) $240

Question

Quizplus · Accepted Answer

The formula for simple interest is I = PRT, where I is the interest, P is the principal amount ($2000), R is the rate (12% or 0.12), and T is the time in years (1). So, I = $2000 * 0.12 * 1 = $240.

According to the Formula for Simple Interest, If You Borrow