loan is $2,100
To find the interest on the loan, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Where:
Principal is the borrowed amount ($30,000)
Rate is the annual interest rate (7%)
Time is the duration of the loan (1 year)
Substituting the values into the formula:
Interest = $30,000 * 0.07 * 1
Interest = $2,100
Therefore, the interest on the loan is $2,100.
