SOLUTION: How much simple interest would be paid on a loan of $2720 at 14% for 3 years?

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Question 693846: How much simple interest would be paid on a loan of $2720 at 14% for 3 years?
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

Simple interest is calculated on the original principal only.
Simple_+Interest+=+p+%2A+i+%2A+n
where:
p = principal (original amount borrowed or loaned)
i = interest rate for one period
n = number of periods
so, if you have a loan of $p=2720 at i=14% annually for n=3 years, you will pay:
$Simple_+Interest+=+p+%2A+i+%2A+n
$Simple_+Interest=2720%2814%2F100%29%2A3
$Simple_+Interest=2720%2A0.14%2A3
$Simple_+Interest=380.8%2A3
$Simple_+Interest=1142.4