Question

Find the simple interest if $5000 is borrowed for 2 years at 12% rate of interest

Answer 1

6,200.00

Explanation:

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 12%/100 = 0.12 per year.

Solving our equation:

A = 5000(1 + (0.12 × 2)) = 6200

A = $6,200.00