Given:
Principal value of loan = $500
Rate of simple interest = 3%
Time = 4 year
To find:
The total amount pay for the loan.
Solution:
Formula for simple interest is
[tex]S.I.=\dfrac{P\times r\times t}{100}[/tex]
where, P is principal, r is rate of interest in percent and t is time in years.
[tex]S.I.=\dfrac{500\times 3\times 4}{100}[/tex]
[tex]S.I.=\dfrac{6000}{100}[/tex]
[tex]S.I.=60[/tex]
So, the simple interest is $60.
Now,
[tex]Amount=Principal+S.I.[/tex]
[tex]Amount=500+60[/tex]
[tex]Amount=560[/tex]
Therefore, the total amount pay for the loan is $560.
