ms. callum receives a $4,000 business loan from a bank. she will pay simple interest on the amount of the…

ms. callum receives a $4,000 business loan from a bank. she will pay simple interest on the amount of the loan for 2 years at an annual interest rate of 6%. what is the total amount that ms. callum will owe the bank for the loan?\n$4,048\n$4,120\n$4,320\n$4,480

ms. callum receives a $4,000 business loan from a bank. she will pay simple interest on the amount of the loan for 2 years at an annual interest rate of 6%. what is the total amount that ms. callum will owe the bank for the loan?\n$4,048\n$4,120\n$4,320\n$4,480

Answer

Explanation:

Step1: Calculate the simple - interest

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$4000$, $r = 0.06$ (since $6%=0.06$), and $t = 2$ years. $I=4000\times0.06\times2$ $I = 480$

Step2: Calculate the total amount owed

The total amount $A$ that Ms. Callum will owe is the sum of the principal amount $P$ and the interest $I$. $A=P + I$ $A=4000+480$ $A = 4480$

Answer:

$4480$