Question

Use the simple interest formula, I = prt, to find the simple interest:

Ken borrowed $6,000 for 4 years at a rate of 7% simple interest per year. How much interest will Ken have to pay after paying back the borrowed amount?

(1 point)
Responses

$420

$420

$1,680

$1,680

$4,200

$4,200

$16,800

Answer 1

To find the simple interest (I) using the formula \( I = prt \), we need to identify the values of \( p \), \( r \), and \( t \):

- \( p \) (the principal) = $6,000
- \( r \) (the rate) = 7% or 0.07 (as a decimal)
- \( t \) (the time) = 4 years

Now we can plug these values into the formula:

\[
I = 6000 \times 0.07 \times 4
\]

Calculating it step-by-step:

1. Calculate \( 0.07 \times 4 = 0.28 \)
2. Then, calculate \( 6000 \times 0.28 = 1680 \)

So, the simple interest Ken will have to pay after 4 years is **$1,680**.

The correct response is:

**$1,680**