Find the simple interest on a loan of $100 at an interest rate of 2% for 7 years.
100 * 0.02 * 7 = ?
PRT = I
is the answer 14?
Yes.
To find the simple interest on a loan, you can use the formula:
Simple Interest = Principal (Loan Amount) x Interest Rate x Time
Given the following values:
Principal (Loan Amount) = $100
Interest Rate = 2% (or 0.02 as a decimal)
Time = 7 years
Plugging these values into the formula:
Simple Interest = $100 x 0.02 x 7
Multiplying these numbers:
Simple Interest = $100 x 0.14
Calculating further:
Simple Interest = $14
Therefore, the simple interest on a loan of $100 at an interest rate of 2% for 7 years is $14.