To calculate the simple interest on a loan, you can use the formula:
Simple Interest (SI) = Principal (P) × Rate (R) × Time (T)
In this case, the principal amount (P) is $200, the interest rate (R) is 10 percent (or 0.10), and we will assume the time (T) is for 1 year (unless specified otherwise).
Plugging in the values:
SI = 200 × 0.10 × 1
SI = 200 × 0.10 = $20
Therefore, the simple interest on a loan of $200 at an interest rate of 10 percent per year is $20.
This means if you borrow $200 for one year at a 10 percent interest rate, you will owe an additional $20 in interest by the end of the year.