The following information is known about a loan.Time = 4 yearsInterest rate = 3.1%Original amount of loan = $1,200What amount of simple interest will be paid on the loan?

Use the simple-interest formula I = P × r × t. Substituting the loan amount, rate, and time gives I = $1,200 × 0.031 × 4 = $148.80, so the simple interest paid is $148.80.

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