What is the annual interest on a $5,000 loan with a simple interest rate of 6%?

$25 a month or $300 a year

Step-by-step explanation:

Calculate simple interest (I) by multiplying the principal (p) by the rate (r) by the number of time periods (t).

Here’s a quick example of the interest you’d earn on a one-year $500 investment that yields 5% interest.

$500 x 5% x 1 year = $25

pls ask