Question

Calculate the simple interest on a $3,000 loan at a rate of 5.5% for 2 years

Answer 1

The simple interest is $330

Step-by-step explanation:

Principal = $3000

rate = r = 5.5% = 0.055

time = t = 2 years

Applying the simple interest formula:

`\begin{gathered} I\text{ = PRT} \\ P\text{ = principal, R = rate, T = time} \\ I\text{ = interest} \end{gathered}`

Inserting the values:

`\begin{gathered} I\text{ = 3000}*\text{ 0.055 }*\text{ 2} \\ I\text{ = 330} \end{gathered}`

The simple interest is $330