To find the total interest paid on a personal loan, we can use the simple interest formula. The formula for simple interest is:
[tex]\[ \text{Total Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \][/tex]
Here, the given values are:
- Principal (P) = [tex]$1000
- Annual interest rate (R) = 5.99%
- Time (T) = 50 years
Let us proceed step by step:
1. First, convert the annual interest rate from a percentage to a decimal. This is done by dividing the percentage by 100.
\[
\text{Annual Rate} = \frac{5.99}{100} = 0.0599
\]
2. Now, apply the simple interest formula. Plug in the values for the Principal, Rate, and Time.
\[
\text{Total Interest} = 1000 \times 0.0599 \times 50
\]
3. Perform the multiplication:
\[
\text{Total Interest} = 1000 \times 0.0599 = 59.9
\]
\[
\text{Total Interest} = 59.9 \times 50 = 2995.0
\]
Thus, the total interest paid after 50 years for a principal amount of $[/tex]1000 at an annual interest rate of 5.99% is $2995.0.
