Question

What is the simple interest for a loan of $2,000 that has a 2.2%rate for 3 years?

Answer 1

The simple interest is given by:

`I=P\cdot r\cdot t`

where:

P = Principal = 2000

r = rate = 2.2 = 0.022

t = time = 3

so:

`\begin{gathered} I=2000\cdot0.022\cdot3 \\ I=132 \end{gathered}`

Answer:

$132