JUNIOR HIGH SCHOOLEXAMPLE 1.Nanay Aning borrowed money froma cooperative to start a sari-saristore business. If the loan from thecooperative is based on simpleinterest rate, find the interest of herloan if she borrowed P35,500 withan interest rate of 7% and will payit within 3 years.
Answer (1)
Answer:To find the simple interest on Nanay Aning's loan, we use the simple interest formula:Interest (I) = Principal (P) × Rate (R) × Time (T)Where:- P = 35,500 (the amount borrowed)- R = 7% or 0.07 (the interest rate as a decimal)- T = 3 years (the time period)Now, calculate the interest:I = 35,500 × 0.07 × 3 I = 35,500 × 0.21 I = 7,455So, the interest on Nanay Aning's loan after 3 years is P7,455.
