Question

A bank loans ​$2100 to a business at 7​% for 3 months. How much simple interest will the bank​ earn?

Answer 1

$36.75

Explanation:

The amount of interest payable is given by ...

I = Prt = $2100·0.07·(3/12) . . . . . . . . t is in years

I = $36.75

The bank earned $36.75 on the loan.