Calculate the simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years.(1 point)
Responses
$800,000
$800,000
$80,000
$80,000
$8,000
$8,000
$1,600
The simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years can be calculated using the formula:
Interest = Principal (loan amount) * Rate * Time
In this case, the principal is $20,000, the rate is 8 percent (or 0.08), and the time is 5 years.
Interest = $20,000 * 0.08 * 5
Interest = $8,000
Therefore, the simple interest on the loan after 5 years is $8,000.