Question

What is the simple interest on $40,000 at 6% interest for 2 months?

Answer 1

Answer: $4,800

Explanation:

(Assuming the interest is calculated monthly)

1. 6% of $40,000 = $2,400

2. $2,400 x 2 months = $4,800

3. Total value of account = $44,800; $4,800 is from interest