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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

Respuesta :

Answer:

1000

Step-by-step explanation:

Answer: the simple interest at 6% is $300

Step-by-step 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

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