What is the simple interest of a loan for $1,000 with 5 percent interest after 3 years?

A.) $1,050

B.) $50

C.) $150

D.) $1,150

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Harry Lam

12 July, 11:54

What is the simple interest of a loan for $1,000 with 5 percent interest after 3 years?

A.) $1,050

B.) $50

C.) $150

D.) $1,150

+4

Answers (1)

Know the Answer?

Adison Clarke · Answer 1

Answer: 150

Explanation: simple interest produces interest only over the initial amount, so every year the interest will be

1000 * 5/100 = 50

So after three years (50x3) it would be 150

What is the simple interest of a loan for $1,000 with 5 percent interest after 3 years?A.) $1,050B.) $50C.) $150D.) $1,150

What is the simple interest of a loan for $1,000 with 5 percent interest after 3 years?

A.) $1,050

B.) $50

C.) $150

D.) $1,150