Question

Find the simple interest on a loan of 20,000 at the rate of 5% in 3 years
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Answer 1

3000

Explanation:

SI = P × R × T

Use simple interest formula.

20000 × 5% × 3

1000 × 3

= 3000

Answer 2

3,000

Explanation:

Loan = 20,000

Simple Interest per year = 5% of 20,000

=>
`(5)/(100)* 20,000`

=> 5 * 200

=> 1,000

Simple Interest for 3 years = 3 * 1000

=> 3,000