Alfred wants to invest $4,000 at 6% simple interest rate for 5 years. how much interest will he receive?

To get the interest after 5 years, use the formula for simple interest which is I = Prt.

Where the meaning of the variables are:

I = interest

P = principal

r = interest rate

t = time

So in the problem,

P = $4,000

r = 0.06 or 6/100 or 6% (but is usually expressed in decimal form)

t = 5 years

Plug those in the formula.

I = Prt = ($4,000) (0.06) (5 years)

= (240) (5)

= $1,200

After 5 years, Alfred will get $1,200 if he invest the $4,000 at 6 percent.