Question

If I pay $600 in interest for my simple interest loan for $10,000 at an

interest rate of 3%, how long did I have the loan for?

Answer 1

2 periods

Explanation:

Simple interest is compounded one time, usually annually, although it could be less time or longer. Thus I answer 2 periods. If your choices include 2 years, that is most likely the answer.

To find the answer,

$10,000 x .03 = $300.

$600 / $300 = 2 periods.

Hope this helps.

Good luck