5
QuizMultiple Choice

Simple Interest

Question 5 • MO-Mathematics 7

The following information is known about a loan.Time = 8 yearsInterest rate = 14%Principal = $1,010What is the total amount of simple interest that is earned?

Answer
A
$113.20
B
$1,131.20
C
$11,311.20
D
$113,112.00

Explanation

Use the simple interest formula I = P × r × t, where P is the principal, r is the annual rate as a decimal, and t is time in years. Substituting gives I = $1,010 × 0.14 × 8 = $1,131.20. Therefore, the total simple interest is $1,131.20, choice B.

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