Questions: Find the simple interest payable on 16000 for 8 years at 12% p.a.

Solution Steps

To find the simple interest payable on a principal amount over a certain period at a given annual interest rate, we can use the formula for simple interest: \( \text{Simple Interest} = \frac{P \times R \times T}{100} \), where \( P \) is the principal amount, \( R \) is the annual interest rate, and \( T \) is the time period in years.

We are given the following values:

• Principal amount, \( P = \$16000 \)
• Annual interest rate, \( R = 12\% \)
• Time period, \( T = 8 \) years

The formula for simple interest is: \[ \text{Simple Interest} = \frac{P \times R \times T}{100} \]

Substituting the given values into the formula, we get: \[ \text{Simple Interest} = \frac{16000 \times 12 \times 8}{100} \]

Performing the calculation: \[ \text{Simple Interest} = \frac{16000 \times 12 \times 8}{100} = 15360.0 \]

Final Answer