Calculate the simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years
8000
1600
800000
80000
To calculate the simple interest on a loan, you can use the formula:
Simple Interest = Principal * Rate * Time
Here, the principal is $20,000, the interest rate is 8 percent (as a decimal, it is 0.08), and the time is 5 years.
Plugging these values into the formula, we get:
Simple Interest = $20,000 * 0.08 * 5
= $8,000
Therefore, the simple interest on a $20,000 loan at an interest rate of 8 percent after 5 years is $8,000.