Jim borrows $14,000 for a period of 4 years at 6 % simple interest. Determine the interest due on the loan. [4 marks

Question

asked Mar 24, 2020 96.0k views

1 Answer

Karen Danielyan · Answer 1 · 2020-03-28T16:54:58+0000

Answer: $ 3,360

Explanation:

Given : The principal amount borrowed for loan :
$P=\ \$14,000$

Time period :
t=4

Rate of interest :
$r=6\%=0.06$

The formula to calculate the simple interest is given by :-

$S.I.=P* r* t\\\\\Rightatrrow\ S.I.=14000*4*0.06\\\\\Rightatrrow\ S.I.=3360$

Hence, the interest due on the loan = $ 3,360