Question

Joe borrowed $8,000 from the bank at a rate of 7% simple interest per year. How much interest did he pay in 9 years?

Answer 1

Answer:

5,040.00

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 7%/100 = 0.07 per year.

Solving our equation:

A = 8000(1 + (0.07 × 9)) = 13040

A = $13,040.00

The total amount accrued, principal plus interest, from simple interest on a principal of $8,000.00 at a rate of 7% per year for 9 years is $13,040.00.