The simple interest on a loan of $200 at 10 percent interest per year is:
$10 per year until the loan is paid off.
$15 per year until the loan is paid off.
$20 per year until the loan is paid off.
$25 per year until the loan is paid off.
The simple interest on a loan of $200 at 10 percent interest per year is:
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To calculate the simple interest, you can use the formula:
[ text{Simple Interest} = P times r times t ]
where:
– ( P ) is the principal amount (the initial loan),
– ( r ) is the rate of interest (as a decimal),
– ( t ) is the time in years.
In this case:
– ( P = 200 ) (the loan amount),
– ( r = 10% = 0.10 ),
– Assuming ( t = 1 ) year for the annual interest calculation.
Plugging in the values:
[ text{Simple Interest} = 200 times 0.10 times 1 = 20 ]
So, the simple interest on a loan of $200 at 10 percent interest per year is $20 per year until the loan is paid off.
The correct answer is: $20 per year until the loan is paid off.