Question

Find the interest on the following loan. $10000 at 8% for 6 months The simple interest is $ (Round to the nearest cent as needed.)

Answer 1

$400

Explanation:

To calculate the interest on a loan using simple interest, you can use the formula:

Interest = Principal × Rate × Time

Given:

Principal = $10000

Rate = 8% (0.08 as a decimal)

Time = 6 months

Plugging in the values into the formula:

Interest = $10000 × 0.08 × 6/12

Simplifying:

Interest = $10000 × 0.04

Calculating:

Interest = $400

Therefore, the interest on the loan is $400.