Question

You loaned a friend $100 and will charge him 5% annual simple interest when he pay it back

Answer 1

The amount of interest after 3 years will be $15.

The complete question is given below.

You loaned a friend $100 and will charge him 5% annual simple interest when he pay it back. What is the amount of interest after 3 years?

What is simple interest?

Simple interest is the concept that is used in many companies such as banking, finance, automobile, and so on.

The interest is given as

I = (P × R × T) / 100

Where, P is the initial amount, R is simple interest rate, and T is the time.

We have

P = $100

R = 5%

T = 3 years

Then the interest will be

I = (100 × 5 × 3) / 100

I = $15

More about the simple interest link is given below.

brainly.com/question/2793278

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