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Chapter 17: Q 6. (page 425)

What is the total amount of interest from a $5,000 loan after three years with a simple interest rate of 6%?

Short Answer

Expert verified

$900

Step by step solution

01

Step 1. Definition

Simple interest is an easy method of calculating interest. Simple interest is calculated by multiplying the interest rate by the principal by the number of days.

02

Step 2. Explanation

Interest=5000×6×3100Interest=$900

so the interest becomes $900 after 3 years.

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