Question

Ryder takes out a loan of $25,600 which earns 4% simple interest yearly. How much interest will he owe on the loan after 3 years?

Answer 1

After 3 years Ryder owes the interest of $3,072 on the loan.

Explanation:

Principal amount borrowed = $25,600

Time = 3 years

Rate of Interest = 4%

Now, SIMPLE INTEREST =
`(P * R * T)/(100)`

So, here S I =
`(25,600 * 4 * 3)/(100)  = 3,072`

Hence, after 3 years Ryder owes the interest of $3,072 on the loan.