Answer:
In this question one has to look forward to the information's already given. Based on those given information's the answer to the question can be easily determined.
Principal amount = $4000
Time for which money is borrowed = 5 years
Rate of interest = 6%
Then
Amount of Interest = Principal * Rate * Time
= 4000 * 6% * 5
= 4000 * 6/100 * 5
= 40 * 30
= 1200 dollars
So the amount of interest that needs to be given is 1200 dollars. I hope the naswer and the procedure is clear enough for you to understand.
