Question

What is the annual interest on a rate 5,000 loan with a simple interest of 6%

Answer 1

9514 1404 393

Answer:

300

Explanation:

The annual interest is the product of the annual interest rate and the loan amount:

I = Prt

I = 5000·0.06·1 = 300

The annual interest on a 5,000 loan at 6% is 300.