Talal wants to borrow $1000. He can get a loan of $1000 at a 6% annual rate for 5 years or at 3% annual rate for 10 years. Find the simple interest at 6% annual rate for 5 years

Question

Mathematics

Octavio Peck

9 January, 20:58

Talal wants to borrow $1000. He can get a loan of $1000 at a 6% annual rate for 5 years or at 3% annual rate for 10 years. Find the simple interest at 6% annual rate for 5 years

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Answers (1)

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Viviana Castro · Answer 1

Answer: the simple interest at 6% is $300

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

From the information given,

P = 1000

R = 6%

T = 5 years

I = (1000 * 6 * 5) / 100 = $300