It depends on the interest rate, which does not usually exceed 25%, and the duration. The longer the loan lasts, the more the (simple) interest would be.
For example, at 11% simple interest for a principle of $100, the interest is 100*(0.11*10) = $110, which exceeds the simple interest.
In consumer arithmetics is the simple interest always smaller than the principle?
3 answers
An investment adviser invested $14,000 in two accounts. One investment earned 5% annual simple interest, and the other investment earned 2.5% annual simple interest. The amount of interest earned for 1 year was $540. How much was invested in each account?
2.300. 1.500. 2.500
1 answer