Question

HELP

I = Prt is the formula for simple interest. The principal is $4,840, the interest rate is 6%, and the time is two years. What is the interest charge?
A. $58.08
B. $580.80
C. $620.19
D. $5,808.00

Answer 1

So I = Prt

I for interest charge
P for principal ($4,840)
r for rate (6%)
t for time (2 yrs)

So you would then plug the information into the equation.....

I = 4,840*.06*2
I = 580.80

So the answer to your question is $580.80 which is option B

Hope this helps! :)