Alfred wants to invest $4,000 at 6% simple interest rate for 5 years. How much interest will he receive?
INTEREST= PRINCIPAL X INTEREST X TIME
= 4000 X 6 X 5
( YOU HAVE TO DIVIDE THE INTEREST RATE BY 100 WHICH WILL GIVE U .06)
= 4000 X .06 X 5
= 24 X 5
= 120
To calculate the interest that Alfred will receive, we can use the formula for simple interest:
Interest = Principal × Rate × Time
Here, the principal is $4,000, the rate is 6%, and the time is 5 years.
To calculate the interest amount, we can substitute these values into the formula:
Interest = $4,000 × 6% × 5 years
First, let's convert the interest rate from a percentage to a decimal. We can do this by dividing the rate by 100:
6% ÷ 100 = 0.06
Now, we can substitute the values into the formula:
Interest = $4,000 × 0.06 × 5 years
Multiplying all these values, we get:
Interest = $4,000 × 0.06 × 5 = $1,200
Therefore, Alfred will receive $1,200 in interest.