Question

Talal wants to borrow $1000. He can get a loan of $1000 at a 6% annual rate for 5 years or at 3% annual rate for 10 years. Find the simple interest at 6% annual rate for 5 years

Answer 1

1000

Explanation:

Answer 2

Answer: the simple interest at 6% is $300

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

From the information given,

P = 1000

R = 6%

T = 5 years

I = (1000 × 6 × 5)/100 = $300