calculate the simple interest on a 20,000 loan at an interest rate of 8 percent after 5years
To calculate the simple interest on a loan, you can use the formula:
Simple Interest = Principal × Rate × Time
Given:
Principal (P) = $20,000
Rate (R) = 8% = 0.08
Time (T) = 5 years
Substituting these values into the formula, we get:
Simple Interest = $20,000 × 0.08 × 5
Simple Interest = $8,000
Therefore, the simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years would be $8,000.