Section: Mathematical Reasoning

35) Shirley borrows $4,000 for five years to make improvements to her home workout room. If the simple interest rate is 16% per year, how much will she pay in interest?

1. $64
2. $3,200
3. $4,640
4. $7,200
5. Unable to compute based on the information.

The question is only asking you to compute the interest amount so simply multiply: $4,000 × 0.16 × 5 = $3,200.

Do not concern yourself with the principal amount.