Question: A loan of $2000 is taken for 3 years at a simple interest rate of 7%. What is the total interest paid?
Options:
$280
$300
$350
$420
Correct Answer: $280
Solution:
SI = (P * r * t) / 100 = (2000 * 7 * 3) / 100 = $420.
A loan of $2000 is taken for 3 years at a simple interest rate of 7%. What is th
Practice Questions
Q1
A loan of $2000 is taken for 3 years at a simple interest rate of 7%. What is the total interest paid?
$280
$300
$350
$420
Questions & Step-by-Step Solutions
A loan of $2000 is taken for 3 years at a simple interest rate of 7%. What is the total interest paid?
Step 1: Identify the principal amount (P). In this case, P = $2000.
Step 2: Identify the interest rate (r). Here, r = 7%.
Step 3: Identify the time period (t) in years. In this case, t = 3 years.
Step 4: Use the simple interest formula: SI = (P * r * t) / 100.
Step 5: Substitute the values into the formula: SI = (2000 * 7 * 3) / 100.
Step 6: Calculate the multiplication: 2000 * 7 = 14000, then 14000 * 3 = 42000.
Step 7: Divide by 100 to find the interest: 42000 / 100 = $420.
Step 8: The total interest paid is $420.
Simple Interest Calculation – Understanding how to calculate simple interest using the formula SI = (P * r * t) / 100, where P is the principal amount, r is the rate of interest, and t is the time in years.
Soulshift Feedback×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy?
