Alex borrowed Php4,000 for 5 years at 6% simple interest rate to pay for his band equipment. How much interest is that?

To calculate the simple interest, we use the formula:

Interest = Principal x Rate x Time

where:

• Principal is the initial amount of money that was borrowed or invested, in this case Php4,000.
• Rate is the annual interest rate, in this case 6% or 0.06 when expressed as a decimal.
• Time is the length of time the money is borrowed or invested for, in this case 5 years.

Substituting these values into the formula gives:

Interest = Php4,000 x 0.06 x 5

So, the interest that Alex would have to pay for his band equipment is Php1,200.

To calculate the simple interest, you can use the formula:

Interest = Principal x Rate x Time

where:

• Principal is the initial amount of money that was borrowed or invested, in this case Php4,000.
• Rate is the annual interest rate, in this case 6%. But we need to express it in decimal form, so we divide it by 100, which gives us 0.06.
• Time is the length of time the money is borrowed or invested for, in this case 5 years.

Substituting these values into the formula gives:

Interest = Php4,000 x 0.06 x 5

Now, just do the multiplication to find the interest.