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

Explanation

The question is only asking you to compute the interest amount so simply multiply: \(\$ 4,000 \times 0.16 \times 5=\$ 3,200\)
Do not concern yourself with the principal amount.

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