Question

Jerry borrowed $4,000 for 5 years at 6% simple interest rate. How much interest is that?

Answer 1

In this question one has to look forward to the information's already given. Based on those given information's the answer to the question can be easily determined.
Principal amount = $4000
Time for which money is borrowed = 5 years
Rate of interest = 6%
Then
Amount of Interest = Principal * Rate * Time
= 4000 * 6% * 5
= 4000 * 6/100 * 5
= 40 * 30
= 1200 dollars
So the amount of interest that needs to be given is 1200 dollars. I hope the naswer and the procedure is clear enough for you to understand.

Answer 2

Use I = Prt
where
I = Interest
P = Principal = $4,000
r = interest rate = 6% = 0.06
t = time = 5 years

I = $4,000 × 0.06 × 5 = $1,200

Jerry borrowed $1,200 for 5 years. Hope this helps!