6
QuizMultiple Choice

Student Loans — Quiz

Question 6 • Financial Algebra/Mathematics

Rachael borrowed $⁢6,000 at an annual interest rate of 4.5% and hasn't made any payments for 6 months. How much interest has accrued on her loan? Use the simple interest formula: I=P×r×t

Answer
A
135 dollars
B
180 dollars
C
270 dollars
D
150 dollars

Explanation

Use the simple interest formula I = P × r × t. Substitute the principal of $6,000, the annual rate of 0.045, and the time of 0.5 years: I = 6,000 × 0.045 × 0.5 = $135. So $135 of interest has accrued, which is choice A.

AI-written and checked against the verified answer.

Previous
Next