Question

A person borrows $12500 from a lender for 3 years at a rate of 10%.
find the simple interest.​

Answer 1

Given:

• P= $12500
• R= 10%
• T= 3 years

Note that:

• P= Principal amount
• R= Rate of interest
• T= Time period

Solution:

`\huge\boxed {\: I=(PRT)/(100)}`

First, we'll have to multiply the principal amount, rate of interest and time period.

`12500 * 10 * 3`

`= 375000`

Now, divide the amount ( 375000 ) by 100.

`= (375000)/(100)`

= $3750

Hence, the simple interest is $3750