Question

Find the simple interest on $50,000 for 2 years at 7%

Answer 1

$7,000

Step-by-step explanation:

To find the simple interest on any principal, we use the formula:

`Simple\: Interest=(Principal* Rate* Time)/(100)`

From the given question:

• Principal = $50,000

,

• Rate= 7%

,

• Time = 2 years

Therefore:

`\begin{gathered} \text{Interest}=(50,000*7*2)/(100) \\ =\$7,000 \end{gathered}`

The simple interest is $7,000.