Loan borrowed = $12,000
Percentage of interest on the loan per annum = 14%
We know that :
[tex]\color{hotpink}\tt \: Simple \: interest = \color{plum}\frac{principal \times rate \times time}{100} [/tex]
In this case :
- principal = $12000
- rate = 14%
- time = 1 year
Simple interest at the end of the first year :
[tex] = \tt \frac{12000 \times 14 \times 1}{100} [/tex]
[tex] = \tt \frac{168000}{100} [/tex]
[tex]\color{plum}\tt = \$1680[/tex]
Thus, interest = $1680
Therefore, total interest on the loan at the end of one year = $1680
