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

We need to caluclate 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 fairly simple formula

**Explanation:**

Simple interest = PTR

Where: P = principal amount, T = the number of years(time), 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

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