Simple interest

Question

Find the simple interest of $3,000 borrowed at 7% for 4 years.

Answer 1

The underlying formula that you want to use to solve here is

Interest = Principal x Rate x Time

For this set of information that means taking

Interest = 3000 x 0.07 x 4 = 840

meaning that the simple interest for $3,000 borrowed at 7% for 4 years is $840