Question

Find the total amount due on a simple-interest loan if the principal is $5,000 with a rate of 4% for 12 years

Answer 1

Answer:

$7400

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

I = 5000 × 0.04 × 12 = 2400

I = $ 2,400.00

The simple interest accumulated

on a principal of $ 5,000.00

at a rate of 4% per year

for 12 years is $ 2,400.00.