Question

A student took out a simple interest loan for 2400 for 2 years at a rate of 7%. What is the interest on the loan?

Answer 1

To calculate the interest on a simple interest loan, use the formula: Interest = Principal × Rate × Time. For this loan of $2400 at a rate of 7% for 2 years, the interest is $336.

Step-by-step explanation:

To calculate the interest on a simple interest loan, you can use the formula:

Interest = Principal × Rate × Time

In this case, the principal is $2400, the rate is 7% (convert to decimal by dividing by 100), and the time is 2 years.

Substituting the values into the formula:

Interest = $2400 × 0.07 × 2 = $336

Therefore, the interest on the loan is $336.

Answer 2

using the 7% interest rate the interest rate is 168 due to the fact if you take 2400 x .07 you get 168 however I don't know if it asks that but in order to see exactly how much money would be in there you would have to add the 168 to the 2400 if you are to add that to the 2400 that was originally put in the bank you would come up to 2568