Find the simple interest of $4,000 borrowed at 7% for 3 years. (Round your answer to the nearest cent.)
I = $

To calculate the simple interest, we use the formula:

\[
I = P \times r \times t
\]

Where:
- $ I $ is the interest,
- $ P $ is the principal amount (\$4,000),
- $ r $ is the annual interest rate (7% or 0.07),
- $ t $ is the time the money is borrowed for (3 years).

Substituting the values into the formula:

\[
I = 4000 \times 0.07 \times 3
\]

Now, let's calculate that.

\[
I = 4000 \times 0.07 = 280
\]

\[
I = 280 \times 3 = 840
\]

So, the simple interest is **\$840**.

### Would you like further details or have any questions?

Here are five related questions you might find interesting:
1. How do you calculate the total amount to be paid after 3 years, including interest?
2. What happens if the interest rate changes to 8%? How does that affect the interest?
3. What is the difference between simple interest and compound interest?
4. How would the interest change if the loan period was extended to 5 years?
5. If you pay off part of the principal early, how does it affect the interest?

**Tip**: Always double-check if you're working with a simple or compound interest formula—compound interest grows faster over time!

Find the simple interest of $4,000 borrowed at 7% for 3 years. (Round your answer to the nearest cent.) I = $

Learn how to calculate simple interest for a loan of $4,000 at 7% interest over 3 years. This step-by-step guide walks through the basic arithmetic and percentage concepts using the formula I = P × r × t. Ideal for students in Grades 6-8.

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