Step 1: write out the formula
The simple interest on the loan can be calculated using the formula:
[tex]\text{simple int}erest\text{ =}\frac{p\text{ x r x t}}{100}[/tex]where p is the principal, in our case, it is the loan = $51000
r is the rate = 10%
t is the time = 1 year
Step2: substitute the values into the equation.
Our next step is to put the values of p, r, and t into the equation so that
[tex]\text{simple interest =}\frac{51000\text{ x 10 x 1}}{100}=5100\text{ }[/tex]Therefore, the simple interest on the loan is $5, 100