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6 November, 11:23

Find the simple interest if $5000 is borrowed for 2 years at 12% rate of interest

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  1. 6 November, 15:21
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    6,200.00

    Step-by-step explanation:

    Equation:

    A = P (1 + rt)

    Calculation:

    First, converting R percent to r a decimal

    r = R/100 = 12%/100 = 0.12 per year.

    Solving our equation:

    A = 5000 (1 + (0.12 * 2)) = 6200

    A = $6,200.00
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