A credit card company charges 7% simple interest. What is the total interest on a $1,900 loan at the end of two years?
I = PRT
I = 1,900 * 0.07 * 2
266.00
To calculate the total interest on a loan, you need to multiply the principal amount (loan amount) by the interest rate and the time period. In this case, the principal amount is $1,900, the interest rate is 7%, and the time period is two years.
To find the total interest, you can use the formula:
Total Interest = Principal x Interest Rate x Time
In this case:
Principal = $1,900
Interest Rate = 7% (or 0.07 in decimal form)
Time = 2 years
Plugging these values into the formula, the calculation would be:
Total Interest = $1,900 x 0.07 x 2
To solve this, you can follow these steps:
1. Multiply the principal amount by the interest rate: $1,900 x 0.07 = $133
2. Multiply the result by the time period: $133 x 2 = $266
Therefore, the total interest on a $1,900 loan at the end of two years, with a 7% interest rate, is $266.