A.You want to calculate the interest on $20000 at 5% interest per year after 4 year(s).
The formula we'll use for this is the simple interest formula, or:
I=P x r x t
Where:
P is the principal amount, $20000.00.
r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.
t is the time involved, 4....year(s) time periods.
So, t is 4....year time periods.
To find the simple interest, we multiply 20000 × 0.05 × 4 to get that:
The interest is: $4000.00
B.You want to calculate the interest on $20000 at 5% interest per year after 2 year(s).
The formula we'll use for this is the simple interest formula, or:
Where:
I=P x r x t
P is the principal amount, $20000.00.
r is the interest rate, 5% per year, or in decimal form, 5/100=0.05.
t is the time involved, 2....year(s) time periods.
So, t is 2....year time periods.
To find the simple interest, we multiply 20000 × 0.05 × 2 to get that:
The interest is: $2000.00
C.you save $2000.00 for paying a 2 year loan instead of a 4 year loan
Hope it help Sorry its long : )