Question

the following information is known about a loan.

time = 8 years
interest rate = 14%
principal = $1,010

what is the total amount of simple interest that is earned?

$113.20
$1,131.20
$11,311.20
$113,112.00

Explanation:

Identify the given values

We extract the parameters from the problem statement:

• Principal \(P = \$1,010\)
• Interest rate \(r = 14\% = 0.14\)
• Time \(t = 8\text{ years}\)

Calculate the simple interest

Using the Simple Interest Formula knowledge point

$$
LATEXBLOCK0
$$

Answer:

• (A) $113.20
• (B) $1,131.20 (Correct answer)
• (C) $11,311.20
• (D) $113,112.00