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Answered

Calculate the simple interest on a $3,000 loan at a rate of 5.5% for 2 years

Answer :

The simple interest is $330

Explanation:

Principal = $3000

rate = r = 5.5% = 0.055

time = t = 2 years

Applying the simple interest formula:

[tex]\begin{gathered} I\text{ = PRT} \\ P\text{ = principal, R = rate, T = time} \\ I\text{ = interest} \end{gathered}[/tex]

Inserting the values:

[tex]\begin{gathered} I\text{ = 3000}\times\text{ 0.055 }\times\text{ 2} \\ I\text{ = 330} \end{gathered}[/tex]

The simple interest is $330

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