calculate the simple interest of $20,000 a loan at the interest rate of 8% after five years
8,000
800,000
80,000
1,600
To calculate the simple interest, you can use the formula:
Simple Interest = Principal x Rate x Time
Given:
Principal (P) = $20,000
Rate (R) = 8% = 0.08
Time (T) = 5 years
Using the formula:
Simple Interest = $20,000 x 0.08 x 5
Simple Interest = $8,000
Therefore, the simple interest on the loan after five years is $8,000.