Question

I take out a 4,000 loan. It's a simple interest loan. Find the interest I get after 4 years at a rate of 6%

Answer 1

960

Explanation:

Let P, R and T denote principal amount, rate of interest and time period.

Principal amount of loan (P) = 4,000

Time period (T) = 4 years

Rate of interest (R) = 6%

Simple interest is calculated using the following formula:

Simple interest
`=(4000(4)(6))/(100) =960`

So,

Simple interest is equal to 960