Find the interest paid on a loan of $69,750 at 9% annual simple interest for 2.7 years.
A) $8920.66
B) $23,226.75
C) $16,321.50
D) $16,949.25

Question

Quizplus · Accepted Answer

Using the formula:

Interest = Principal x Rate x Time

where,

Principal = $69,750 
Rate = 9% = 0.09 (since it is annual simple interest) 
Time = 2.7 years

Substituting the given values in the formula:

Interest = $69,750 x 0.09 x 2.7

Interest = $16,949.25

Therefore, the interest paid on the loan is $16,949.25

The correct answer is D.

Find the Interest Paid on a Loan of $69,750 at 9