Question

If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is the interest?

Answer 1

Answer:

$600

Explanation:

The simple interest earned is a function of the principal amount invested, the rate and time. It is given as

I = PRT/100

where I, P, R, T are the simple interest, the principal, rate and time respectively.

Therefore,

I = 2000 × 10 × 3/100

I = $600