Question

$2,000 at 12% rate for 3 yearswhat is the simple interest?what is the total amount?

Answer 1

The simple interest on a principal, P can be obtained using the formula

`\text{Simple interest =}\frac{P\text{ X R X T}}{100}`
`\begin{gathered} P\text{ = 2000, R = 12, T = 3} \\ \text{Simple interest =}\frac{2000\text{ x 12 x 3}}{100} \\ \\ =\text{ \$ 720} \end{gathered}`

Total amount = $2000 + $720

=> $ 2720