Question

Frankie borrowed 800 for 6 years. He is charged 5% simple interest. How much interest will he pay in 6 years

Answer 1

Answer: The required simple interest = $240

Explanation:

Formula for simple interest:

Interest = Principal x rate x time

Given: Principal = $800

rate of interest = 5% = 0.05

Time = 6 years

Interest = 800 x 0.05 x 6 = $240

Hence, the required simple interest = $240