MATHEMATICS QUESTION

Question

Ron borrowed $ 20000to start up his consulting business. The loan had a simple interest rate 5.6% for 2 years. Use the formula I = prt to find the amount of interest he will pay on the loan . I= interest, p= principal, r= rate ( expressed as a decimal 0.056 ) t= time in years

Answer 1

$2,240 simple interest in two years on Principal of $20,000 at .056 = 5.6% annual interest

I = prt = 20,000(.056)(2) = 2,240

You won't find any banks or loan companies loaning money at "simple" interest

Your mother conceivably might, but she more likely wouldn't charge any interest