Question

What is the simple interest of a loan for $1000 with 5 percent interest after 3 years?

Answer 1

$150

Explanation:

`S.I. = ( P * R * T )/100` where,

P = Principle amount ( $1000 )
R = rate of interest ( 5% )
T = Time in YEARS ( 3 )
`therefore`
`S.I. = ( 1000 * 5 * 3 )/100`
= `10 * 5 * 3`
= $150.
`therefore` simple interest will be $150.