Question

Find the simple interest owed for the loan. $3,300 at 8% for 1 year

Answer 1

The simple interest owed for the loan is;

`\text{ \$264}`

Step-by-step explanation:

We want to find the simple interest owed for the loan. $3,300 at 8% for 1 year​;

`\begin{gathered} \text{ Principal P}=\text{ \$3,300} \\ \text{rate r = 8\% =0.08} \\ \text{time t = 1 year} \end{gathered}`

Recall that the formula for simple interest is;

`I=P* r* t`

Substituting the given values;

`\begin{gathered} I=\text{ \$3,300}*0.08*1 \\ I=\text{ \$264} \end{gathered}`

The simple interest owed for the loan is;

`\text{ \$264}`