Alex takes a loan of $5,000 to buy a used truck at the rate of 2 % simple Interest.Calculate the annual interest to be paid for the loan amount. Pick
A) 100
B) 150
C) 720
D) 200
E) 750
From the details given in the problem Principle = P = $5,000 and R = 2% or 0.02 expressed as a decimal.   As the annual Interest is to be calculated, the time period T =1.   Plugging these values in the simple Interest formula,   I = P x T x R   = 5,000 x 1 x 0.02   = 100.00   100nnual Interest to be paid = $100   answer :100
<result>A</result>
Alex takes a loan of $5,000 to buy a used truck at the rate of 2 % simple Interest.Calculate the annual interest to be paid for the loan amount.