Question

Lincoln is seeking a loan with a simple interest rate of 8% per year. If he wants to borrow $5000, then how much will he be charged in interest for 24 months? $8,000 $9,600 $1,250 $800​

Answer 1

Lincoln will be charged $9,600.

Explanation:

To find the answer we will first turn 8% into a decimal. 8 ÷ 100 = 0.08. Now multiply 0.08 by $5,000 and we get $400. then multiply $400 by 24 and we get $9,600. Therefore, $9,600 is our answer.