Question

Find the interest on the loan if Tim borrows $10,000 for 3 years at a simple interest of 10%

Answer 1

Simple interest formula:

`I=P* r* t`

I is the interest

P is the principal amount

r is the rate of interest in decimal form

t is the time in years

For the given situation:

P=10,000

r= (10/100)=0.1

t=3

`\begin{gathered} I=10,000*0.1*3 \\ \\ I=3,000 \end{gathered}`

Then, the interest on the loan is $3,000