The following information is known about a loan. Time is equal to 4 years Interest rate is equal to 3 point 1 percent Original amount of loan is equal to 1 dollars comma 200 What amount of simple interest will be paid on the loan?

Use the simple interest formula I = P × r × t. With a principal of $1,200, an annual rate of 3.1% (0.031), and 4 years, I = 1,200 × 0.031 × 4 = $148.80. The correct choice is $148.80.

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