what is the simple interest of 32500 for a 4 year loan at 4%?
I = PRT
I = 32,500 * 0.04 * 4
I = ?
32500*4=1300*4=5200 why wouldn't I multiply it by 48 since it is a 4 year loan not a 4 month loan? isn't interest by the month not the year?
No. Loan percentage rates are for a year, not a month.
To calculate the simple interest for a loan, you need to multiply the principal amount (32500) by the interest rate (4%) and the time period (4 years).
First, convert the interest rate to a decimal by dividing it by 100: 4% ÷ 100 = 0.04.
Next, multiply the principal amount, interest rate, and time period together: 32500 x 0.04 x 4 = 5200.
Therefore, the simple interest for a 4-year loan at 4% on a principal amount of 32500 is $5200.