Question

The following information is known about a loan. Time = 8 years Interest rate = 14% Principal = $1,010 What is the total amount of simple interest that is earned?

Answer 1

Answer: The answer would be $1,113.20

Explanation:

Answer 2

Answer: Total simple interest= $1131.2

Explanation:

Given: Principal (P)= $1010

Time (t)= 8 years

Rate of interest = 14%

In decimal rate of interest (r)=0.14

We know that the simple interest is given by

`Simple\ interest =Prt\\\Rightarrow\ Simple\ interest=1010*0.14\\\Rightarrow\ Simple interest=\$1131.2`

Hence, the total simple interest earned = $1131.2