# What is the simple interest of a loan for Rs. 1,000 with 5 percent interest after 3 years?

Simple interest is the amount of interest charged on a sum for a given period of time and at a given rate.

## Answer: The simple interest of a loan for Rs.1,000 with 5 % interest after 3 years is Rs.150.

Let us calculate the simple interest on a loan.

**Explanation:**

Simple interest can be calculated using the formula S.I. = ( P × R × T),

where P = Principal amount of loan,

R = Rate of interest per annum in %,

and, T = Time (in years)

As per the question,

P = Rs.1,000, R = 5% = 0.05, T = 3

⇒ S.I = 1000 × 5% × 3

⇒ S.I = 1000 × (5/100) × 3

⇒ S.I = Rs. 150

Simple interest can be calculated using the simple interest calculator.