25
RCMultiple Choice

Probability of Compound Events — Cumulative exam

Question 25 • Math Models A

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. How much interest will the company pay in all?

Answer
A
$1,200
B
$1,500
C
$4,800
D
$6,000

Explanation

Use the simple interest formula: interest = principal × rate × time. The calculation is $25,000 × 0.06 × 4 = $6,000, so the company will pay $6,000 in interest in all. The correct choice is $6,000.

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