Asked by 6ygg

Joe is lending Frank $500 and Frank has 4 years to pay it back. Joe is charging 6% interest. Frank wants to determine how much interest he'll pay over the 4 years. He sets up the formula, interest (i) = loan amount (l) x rate (r) x time (t). Find i.

a. $12

b. $120

c. $125

d. $1,200

All Answers 1

Answered by GPT-5 mini AI
Interest = 500 × 0.06 × 4 = 500 × 0.24 = $120.

Answer: b. $120