The simple interest formula is A=P⁢(1+r⁢t) Griffin gets a car loan of $⁢10,000 at an annual interest rate of 5% to be paid over 4 years. What is the total amount of interest he will pay by the end of the loan term?

For simple interest, the interest is P × r × t. Using the loan amount of $10,000, the annual rate of 0.05, and 4 years gives $10,000 × 0.05 × 4 = $2,000. Griffin will pay $2,000 in interest, which is choice A.

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