Question

simple interest rate of 5.4% of a 5000 dollar loan over the course of 8 years

Answer 1

To calculate the simple interest on a loan, you need to multiply the principal amount (loan amount) by the interest rate and the number of years.

Given:
Principal amount (loan amount) = $5000
Interest rate = 5.4%
Time (years) = 8

Calculating the simple interest:
Simple Interest = (Principal amount * Interest rate * Time) / 100

Substituting the given values:
Simple Interest = (5000 * 5.4 * 8) / 100

Simplifying the equation:
Simple Interest = (216000) / 100
Simple Interest = $10800

Therefore, the simple interest on a $5000 loan over 8 years at a 5.4% interest rate will be $10800.