Question

a person borrows $12500 from a lender for 3 years at a rate of 10%.
find the simple interest.​

Answer 1

Given:

• P= $12500
• R= 10%
• T= 3 years

Note that:

• P= Principal amount
• R= Rate of interest
• T= Time period

Solution:

$\huge\boxed {\: I=\frac{PRT}{100}}$

First, we'll have to multiply the principal amount, rate of interest and time period.

$12500 \times 10 \times 3$

$= 375000$

Now, divide the amount ( 375000 ) by 100.

$= \frac{375000}{100}$

= $3750

Hence, the simple interest is $3750