Question:
The simple interest on a loan of $5,000 borrowed for 2 years at an annual rate of 5% is?
Options:
A) $250
B) $500
C) $750
D) $1000
Answer:
A) $250
Solution:
Simple Interest = Principal x Rate x Time = $5,000 x 5% x 2 years = $250.
Question:
Options:
A) $250
B) $500
C) $750
D) $1000
Answer:
A) $250
Solution:
Simple Interest = Principal x Rate x Time = $5,000 x 5% x 2 years = $250.