Question

Jameson is seeking a loan with a simple interest rate of 3% per year. If he wants to borrow $8000, then how much will he be charged interest after 4 years?

Answer 1

The value of interest charged after 4 years = $ 960

Explanation:

Principal amount P = $ 8000

Rate of interest R = 3 %

Time = 4 year

Simple interest =
`(P R T)/(100)`

⇒ S.I. = 8000 × 4 ×
`(3)/(100)`

⇒ S.I. = $ 960

This is the value of interest after 4 years.