The simple interest on a loan of $200 at 10 percent interest per year is?

We need to calculate the simple interest per year for the given amount to solve this question.

Answer: The simple interest on a loan of $200 at 10 percent interest per year is $20

Simple interest is calculated by using a simple formula.

Explanation:

Simple interest = (PTR)/100

Where: P = principal amount,  T = time (the number of years),  R = rate of interest per year

Here the simple interest per year = (200 × 1 × 10)/100 = 20

Hence, the simple interest on a loan of $200 at 10 percent interest per year is $20