Steps of calculations that show the simple interest on a R5000 loan for 3 years at 9 percent interest
Well, well, well, you're looking for some financially funny business, huh? Alright, buckle up, my friend, because I'm about to show you the belly-aching steps to calculate simple interest on a R5000 loan for 3 years at 9 percent interest.
Step 1: Write down the principal amount: R5000. That's the amount you borrowed.
Step 2: Check out the interest rate, which is 9 percent. And we're talking simple interest here, so no fancy compounding calculations to wrap our heads around, thank goodness.
Step 3: Multiply the principal amount by the interest rate, and then by the number of years.
5000 x 0.09 x 3 = R1,350.
Step 4: Voila! You've got yourself the simple interest. The interest accrued on your loan over three years is R1,350. No complex equations, just simple math.
So, in the end, you owe the original R5000 plus the R1,350 in interest. That's a grand total of R6,350 that you'll need to return to the lender. Good luck with that!
To calculate the simple interest on a loan, we can use the formula:
Simple Interest = Principal x Interest Rate x Time
In this case, the principal (loan amount) is R5000, the interest rate is 9% (or 0.09 as a decimal), and the time period is 3 years.
Step 1: Convert the interest rate to decimal form:
9% = 9/100 = 0.09
Step 2: Plug in the values into the formula:
Simple Interest = R5000 x 0.09 x 3
Step 3: Multiply the numbers:
Simple Interest = R5000 x 0.27
Step 4: Calculate the final result:
Simple Interest = R1350
Therefore, the simple interest on a R5000 loan for 3 years at a 9% interest rate is R1350.
13500
500
I = PRT
I = 5000 * 0.09 * 3