Answer: interest of one year Loan is: $ 1,026
Step-by-step explanation:
Simple interest is applied just to the principal loan.
Because the question is just for the Simple interest we can use the formula to find the interest:
P*i*n
Where P is the principal (loan) = $ 25,650
i is the simple interest rate: 4%
n is the Period of time= 1 year.
Just Replace.
Therefore the simple interest is: P*i*n = $ 25,650*4%*1 = $ 1,026
