Question

Find the total amount of simple

interest on a loan if the principal is
$2,200 with a rate of 8% for 3 years.
What is to be repaid on the loan?

Answer 1

Simple interest = $528

Explanation:

To calculate the simple interest, we are going to use the formula below;

S.I = P×R×T / 100

WHERE

P = Principal

R =Rate

T=Time given in years

and

S.I = Simple Interest

From the question,

Principal(p) is given to be equal to $2,200

Rate(R) is equal to 8

and

Time(T) is equal to 3

We can now proceed to substitute the values into the formula;

S.I = P×R×T / 100

= $2,200×8×3 / 100

=$52,800 / 100

=$528

Simple interest = $528