The following information is known about a loan. Time is equal to 8 years Interest rate is equal to 14 percent Principal is equal to 1 dollars comma 010 What is the total amount of simple interest that is earned?
Answer
A
113 point 2 0 dollars
B
113 dollars comma 112 point 0 0
C
1 dollars comma 131 point 2 0
D
11 dollars comma 311 point 2 0
Explanation
Use the simple-interest formula I = P × r × t. Substituting the values gives I = $1,010 × 0.14 × 8 = $1,131.20. The correct choice is $1,131.20.
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