Respuesta :
Answer:
Interest Earned ₹ 1,800
Principal Amount ₹ 10,000
Total Value ₹ 11,800
The cost of the loan for Mandy will be $11800 and the total interest for 3 years will be $1800.
What is simple interest?
Simple interest is a predetermined proportion of the principal amount borrowed or lent that is paid or received over a set period of time.
Simple interest is a way to figure out how much interest will be charged on a sum of money at a specific rate and for a specific duration of time.
In another word, if the principle amount is the same in each time period then the interest will also same for every time period.
Given that
Principle amount = $ 10000
Time period = 3 years
Rate of interest = 6%
Rate of interest at the end of 1st year
10000 × 6/100 ⇒ $600
Since in simple interest rate of interest remain same so
Rate of interest for 3 years
3 × 600 = $ 1800 hence rate of interest will be $1800.
Cost of the loan = principle amount + total interest
Cost of the loan = 10000 + 1800 ⇒ $11800 will be the cost of the loan.
For more about simple interests,
https://brainly.com/question/25845758
#SPJ2
