# 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