Answer:
$133.2
Step-by-step explanation:
[tex]\frac{120*2*5.5}{100\\}[/tex]=13.2
13.2+120
133.2
The simple interest of$13.2 is due on loan of $120 for two years with the annual rate of 5.5%.
simple interest is the interest amount for a particular principal amount of money at some rate of interest.
S.I = (P × R × T)/100
Where,
S.I is simple interest
P is the Principal amount
R is the interest rate
T is time in years
According to the given question.
We have
Principal, P = $120
Interest rate, R = 5.5%
And time, T = 2 years
Therefore, the simple interest for two years for the amount $120 is given by
[tex]S.I = \frac{(120)(5.5)(2)}{100}[/tex]
⇒ [tex]S.I = \frac{1320}{100}[/tex]
⇒ S.I = $13.2
Hence, the simple interest of$13.2 is due on loan of $120 for two years with the annual rate of 5.5%.
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