Answer :
The answer is $6,000, because you multiply the 25,000 times .6 percent for interest, then multiply $15000 times .4 years and $6000 will be what you pay in interest.
Answer:
d. $6,000
Step-by-step explanation:
We have been given that the office manager of First Tech Support borrowed $25,000 to purchase new computers for employees. The bank charges 6 percent interest for 4 years.
We will use simple interest formula to solve our given problem.
[tex]I=Prt[/tex], where,
I - Amount of interest,
P = Principal amount,
r = Interest rate in decimal form,
t = Time in years.
First of all, we will convert our given interest rate in decimal form.
[tex]6\%=\frac{6}{100}=0.06[/tex]
Upon substituting our given values in simple interest formula, we will get
[tex]I=\$25,000*0.06*4[/tex]
[tex]I=\$6,000[/tex]
Therefore, the company will pay an amount of $6,000 in interest and option 'd' is the correct choice.