Question

If $13,000 is borrowed at 5.8% simple interest for 10 years, how much interest will be paid for the loan

Answer 1

7,540

Step-by-step explanation:

Principle is $13,000

Rate is 5.8%

Time is 10 years

Therefore the simple interest can be calculated as follows

= principle × rate × time

= 13,000 × 5.8/100 × 10

= 13,000 × 0.058×10

= 7,540

Hence the simple interest is 7,540