How much simple interest will be paid on a $500 loan for 1 year if the annual interest rate is 6%?

Master the NLN PAX Mathematics 1 Exam with our comprehensive study guide and quizzes. Test your knowledge with multiple choice questions tailored for the PAX Math exam, featuring detailed explanations and tips to enhance your preparation and increase your chances of success.

Multiple Choice

How much simple interest will be paid on a $500 loan for 1 year if the annual interest rate is 6%?

Explanation:
Simple interest is found by multiplying the principal by the annual rate and the time in years: I = P × r × t. With P = 500, r = 0.06, t = 1, you get I = 500 × 0.06 × 1 = 30. So the interest paid after one year is $30 (since 6% of 500 equals 30).

Simple interest is found by multiplying the principal by the annual rate and the time in years: I = P × r × t. With P = 500, r = 0.06, t = 1, you get I = 500 × 0.06 × 1 = 30. So the interest paid after one year is $30 (since 6% of 500 equals 30).

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy