The amount of simple interest will be paid on the loan will be $148.8.
What is simple interest?
Simple interest is the concept that is used in many companies such as banking, finance, automobile, and so on.
The interest is given as
I = (P × R × T) / 100
Where, P is the initial amount, R is simple interest rate, and T is the time.
The following information is known about a loan.
Time = 4 years
Interest rate = 3.1%
Original amount of loan = $1,200
Then the amount of simple interest will be paid on the loan will be
I = (1200 × 3.1 × 4) / 100
I = 14880 / 100
I = $148.8
More about the simple interest link is given below.
https://brainly.com/question/2793278
#SPJ2
