A small business borrows $6,000 at % for 48 months. How much interest does the business owe?

To determine how much interest the business owes on a loan of $6,000 at a certain interest rate for 48 months, we need to break down the problem into manageable parts.

1. ### Break Down the Problem

1. Identify the principal amount (the loan amount).
2. Determine the interest rate.
3. Define the loan term in months or years.
4. Calculate the interest.

2. ### Relevant Concepts

The formula to calculate simple interest is given by: $\text{Interest} = P \times r \times t$ where:

• $P$ is the principal amount (loan amount),
• $r$ is the annual interest rate (as a decimal), and
• $t$ is the time in years.

3. ### Analysis and Detail

Since the interest rate was not specified, I will illustrate the calculation using a general annual interest rate $r$, which you can replace with the specific rate when you know it.

Assuming the loan is for $P = 6000$ and the term is $t = \frac{48}{12} = 4$ years, we represent the interest as: $\text{Interest} = 6000 \times r \times 4$ Thus, the interest owed can be computed as: $\text{Interest} = 24000r$

4. ### Verify and Summarize

To find the total interest owed, multiply $r$ by 24000. Ensure $r$ is in decimal form (for example, a 5% interest rate should be input as 0.05).

Final Answer

The interest owed by the business for the loan of $6,000 over 48 months at an interest rate $r$ is given by: $\text{Interest} = 24000 \times r$ You need to provide the specific interest rate to calculate the exact amount.