Question

Find the simple interest paid for 7 years on a $600 loan at 5% per year.

Answer 1

$210

Explanation:

The formula for simple interest is i = prt, where p is the principal, r is the annual interest rate as a decimal fraction, and t is the time in years.

Here, t = 7 years; p = $600; and r = 0.05.

Then the simple interest in this case is

i = $600(0.05)(7 yr) = $210

Answer 2

$210.00

Explanation:

5/100*600=30.00

30*7=$210.00